Impending public spending cuts and economic uncertainty hit construction

The construction industry must brace itself for more redundancies over the next 12 months, according to a survey by the RICS.

The warning has come after companies saw workloads decrease this year.

The balance of surveyors reporting increasing workloads stood at -7 for the second quarter, compared to +5 for the first quarter of the year. The RICS survey shows that most sectors of the construction industry experienced a drop in workloads, particularly those working in the public sector.

RICS said that fears about the scale of public spending cuts and continued uncertainty about prospects for the economy have hit the construction industry.

All areas of the UK, apart from the South-east and London, experienced a drop in workload, according to the survey.

Some 17% more surveyors in Scotland reported a fall than a rise in construction workloads from April to June this year.

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