Dr David Crosthwaite, chief economist at BCIS, said: ‘The sustained decline in brick and block deliveries, coupled with persistently high stock levels, points to a weak demand environment that shows little sign of improving. That is becoming an even greater concern as the government prepares for a change in leadership, with new priorities likely to emerge under front-runner Andy Burnham.
‘Promisingly, house building is expected to be high on the agenda and, if successfully accelerated, could help stimulate demand for key construction materials and provide a much-needed boost to supply chains.
‘However, the incoming administration is likely to face many of the same structural challenges as its predecessor, and there is little evidence at this stage that a change in leadership alone will deliver materially different outcomes. Reallocating capital spending towards defence is also unlikely to generate broad-based demand across the construction sector.
‘The priority should be to focus on policies that can deliver sustainable economic growth. A stronger economy will increase business confidence, encourage private investment and support demand for new housing, commercial development and infrastructure. If those foundations are in place, construction activity should follow naturally.’
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