The latest Construction Purchasing Managers’ Index research shows that a increasing number of construction companies has made staff cuts ahead of next week’s comprehensive spending review.
The survey, undertaken by Markit and the Chartered Institute of Purchasing & Supply, showed that nearly a quarter of the 170 firms cut jobs in September - the largest for six months. Concern is growing about the likely level of public spending cuts to come out of the review.
CIPS chief executive David Noble said it was widely expected that construction would suffer in the forthcoming round of public sector cuts, commenting:
“While the construction sector is still growing, a sharp fall in confidence suggests work in the pipeline may not be so strong. Not since the onset of the recession have we seen optimism in such short supply.”
According to the Office for National Statistics, over 230,000 jobs were lost in the construction industry this year to the end of March alone. Economists have attributed the latest ONS figures which showed a surge for construction jobs in the second quarter of 2010 to a temporary blip caused by public sector orders placed towards the end of the Labour Government.
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