Construction Sector Update – Summer 2018

It might not feel like it’s been three months since our Spring 2018 Construction Sector Update, but it has. Therefore, it’s now time to look at how Construction fared over the summer.

Here’s a few facts from recent months.


  • In July, the Government announced their new construction sector deal, which involves investment into the construction industry to boost productivity. There are a lot of points to the full deal, some of which include training programmes and other ways to improve the industry. As the deal is so large, we’ll go into more detail on this in an upcoming post.
  • An article on This Is Money suggests that the construction sector has been growing over the Spring and Summer. Since the Beast From The East in March, activity increased for three consecutive months to June. As well as this, the demand for new orders was the highest since May last year.
  • According to City A.M., this continued into July – with the purchasing managers index (PMI) rising for the fourth consecutive month. It also shows the strength of house building as the article states this section of the industry is still strong.
  • The Independent has written an article suggesting how construction firms are feeling the impacts of Brexit as a lot of workers in the sector are from other countries. However, the article also states that a lot of these firms haven’t yet started to prepare for Brexit either.
  • The Construction Enquirer agrees that Brexit is still having an impact on the construction sector in it’s forecasts for the next few years. Office building could fall, as could retail as the high street continues to face difficulties. However, it does predict some areas of the construction sector, like infrastructure, could improve over the next couple of years.


The last couple of points there might have some negativity attached – but nothing unexpected. Brexit will probably still be affecting the construction industry in some way for a long time to come. It already has had an impact for months, if not years – we wrote this post back in May about it.

It’s important not to discount Brexit as playing a part in the construction sector, but there’s no point only looking at that when considering the sector as a whole – which according to some sources seems to be growing quite well despite this. House building is still strong, as expected with the targets in place to create more homes. As well as this, one key point to take away is that the demand for construction work is still growing, meaning the sector as a whole is doing well.

Although it was hampered by the snow and freezing temperatures in March, the sector has recovered from this quite quickly, and has been growing ever since. Therefore this, along with the fact the sector is doing well despite uncertainty, shows it’s in a good place overall.

One final thing to look at is the Government’s Construction Sector Deal, announced at the beginning of July. This deal has a range of initiatives to boost the construction sector further, meaning there is a chance this might help the growth of the industry over the coming months and years. It’s also looking like it will address some upcoming challenges. The need for house building to become more productive and a boost to the training of skilled workers to help with the shortage might be just two of these.

It’s also good that these Government initiatives are backed by investment, and they cover a wide range of areas across the Construction sector. There are plenty of new ideas to be put in place over the coming months and years, which could improve the construction industry in the future.

Overall, it looks like the construction sector did well over Summer after a less than ideal start to 2018. Let’s hope it’s growth continues for the rest of the year and beyond.


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