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Workload growth slips back in Q2

Industry workloads grew at a slower rate in the second quarter of 2018 as financial constraints continued to restrict activity.

The Royal Institution of Chartered Surveyors (RICS) survey for Q2 2018 showed that the net balance of surveyors reporting growth minus those reporting decline was positive at 15 per cent.

However, this was lower than the net balance of 23 per cent who saw growth in the previous quarter.

RICS’ data also revealed that 80 per cent of respondents believed financial constraints were single biggest barrier to work going ahead.

The organisation said respondents had flagged access to bank finance and credit as a significant problem in recent surveys.

Comments from those surveyed cited Brexit-related uncertainties in relation to a lack of finance in the market.

Respondents pointed to the number of skilled workers as an ongoing problem.

RICS senior economist Jeffrey Matsu said: “Although growth in the sector has moderated, ongoing capacity constraints have ensured a steady pipeline of work with robust expectations for the year ahead.

“With businesses continuing to hire to meet this pent-up demand, the effects of any uncertainty generated by Brexit or recent market events, including Carillion, may only become more evident in the longer term.”

The EY Profit Warnings Stress Index published this week showed that there were twice as many profit warnings issued by FTSE construction and material companies in the first half of 2018 as the same period of 2017.

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