Commercial development firms have reduced their construction activity in the last month, as uncertainty over the economy continues, it is claimed.
The
commercial development sector has seen a fall in construction activity - a situation which is not overly surprising, according to the Federation of Master Builders (FMB).
Recent data compiled by Savills indicated that commercial development activity declined by 2.8 per cent in June, following slight growth in the previous two months.
FMB director general Richard Diment says the news is not surprising, as many
property investment firms remain cautious until the government makes its economic plans clearer.
He goes on to say that there is obviously going to be a lot less expenditure in the next few years - a situation which will clearly affect the construction industry - but it is important that the public sector continues to invest in new builds.
Mr Diment concluded: "Certainly I think public sector bodies are under an awful amount of pressure to keep control.
"To some extent I think the public expenditure squeeze has already clearly started."
Posted by Lisa Fear
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