Survey by the Federation of Master Builder reports drop off in workload for small and medium sized firms
The SME construction sector is heading for a double dip recessions according to the latest State of Trade Survey from the Federation of Master Builders.
42% of respondents to the survey for the third quarter of 2010 said that public new build workloads had fallen and that a further 51% expect them to do so again in the next three months.
Richard Diment, director general of the FMB said: “The severe reduction in workloads for small construction companies working on public sector new build projects such as schools, hospitals and other infrastructure construction is a direct consequence of the government’s public sector cuts.”
“We are now moving towards a double dip recession in construction with more than half of our members anticipating falling workloads in the public sector over the coming three months. Only 9% of our members expect things to improve.”
Diment added that he feared there is worse to come when the results of the Comprehensive Spending Review are announced next month.