Just when it seemed safe to come from under the duvet after the turmoil caused by BREXIT and COVID, business confidence again slipped to low levels last week following the worsening financial and political crisis. Ironically, construction output increased in September due mainly in delayed projects going ahead.
House building was the best performing sector although it is expected to be hit hard by the increases in Bank of England base rate. In a sector that is traditionally highly geared a return to high interest rates must be a concern.
As usual, Architects are first to feel the cold wind of a downturn in construction activity with many expecting a return to levels last experienced during the 2009 financial crisis and lasting into 2023.
Duncan Cartlidge FRICS