The construction profit outlook for the UK has been dealt a blow by the slowing of the housing market, according to the RICS.

The institution reported that growth in construction workloads stabilised in the third quarter, with 16% more chartered surveyors reporting a rise than a fall.

RICS senior economist David Stubbs said: “The cooling of the housing market, after the credit crunch and the Northern Rock turmoil, has filtered down to the outlook for the construction market. Despite this, projects in the private industrial sector lead the way this quarter.

“Economic growth and the impact of the floods has increased pressure on labour resources and materials in some areas. The construction industry is stable and a slight downturn in confidence is to be expected given the current economic situation.”

Stable growth in workload activity was more or less evenly distributed across the industry. Workload growth bounced back in the public works, public housing and private industrial sectors.

Source

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