Chamber News
Construction sector grows despite rate rises dealing ‘hammer blow’ to housing
7 August 2023 • Sarah Medcraf
Commercial building work and civil engineering offset sharp falls in residential house building, an influential survey showed.
The UK’s construction returned to growth in July as an uptick in commercial work offset sharp falls for residential housebuilding.
The uplift last month was driven by commercial building activity, such as building offices for corporate firms, and civil engineering work which continues to show a strong performance.
The survey found, residential housebuilding recorded its eighth month in a row of decline.
Construction firms said that rising borrowing costs led to fewer sales inquiries and slower decision-making among customers in July.
Dr John Glen, chief economist at the Chartered Institute of Procurement & Supply (CIPS), said: “Although the sector showed a slight uplift in activity in July, there is a question mark over the sustainability of this growth and the challenges that lie beneath the floorboards.”
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