RICS reports record construction work slump

Construction workloads fell to record lows during the last quarter of 2008 according to the latest RICS UK Construction Market Survey.

Chartered surveyors posted the worst set of results since the survey began in 1994 with 47% more firms reporting a fall than a rise in work.

Private housing remained the hardest hit sector with 66% more surveyors reporting a fall than a rise over the period.

Private commercial and industrial workloads dropped sharply over the fourth quarter with infrastructure remaining a little more resilient.

Confidence in prospects for the next twelve months is also at its gloomiest with a record 45% of chartered surveyors expecting workloads to fall rather than rise.

A net balance of 61% expect a further erosion in profit margins and a net balance of 45% anticipate being forced to make job cuts over the period.

RICS Chief Economist Simon Rubinsohn said: "The pressure on the construction sector shows no signs of abating at the moment. Indeed, if anything it appears to be intensifying as the weakness in the housing sector spreads to both commercial and industrial workloads.

"With profits being squeezed, significant job cuts are likely to result. The danger is that this will lead to a permanent loss of skilled labour which will leave the construction sector ill-equipped to play a meaningful role when the economy does begin to emerge from the current recession."