en.Wedoany.com Reported - According to the latest "Business Barometer" report released by Lloyds Bank, business confidence in the UK construction sector rose from 44% to 46% in June, boosted by market and customer demand.
The report indicates that 60% of surveyed construction companies attributed the increase in confidence to stronger customer or market demand. Max Jones, Head of Construction at Lloyds Bank, stated that construction companies "have been adapting to numerous complexities over the past few years," and the latest data shows that optimism is rising, providing a more positive outlook for businesses across the industry in the coming months.
Economic uncertainty and cost pressures remain key headwinds, but some companies reported resilient demand and a willingness to invest. Construction was the only sector in the survey where confidence in own trading prospects also increased, with this indicator rising by 5 percentage points to 59%. Two-thirds of construction companies expect business activity to grow next year, up 4 percentage points from May, while only 8% expect a decline.
Jones noted that many construction companies "are now preparing for growth with confidence." Supported by strong demand and long-term infrastructure investment, opportunities are emerging across the industry, creating momentum for companies as they look ahead to the second half of the year.
The "Business Barometer" surveys 1,200 companies across four sectors each month, including 190 construction firms, as well as companies in manufacturing, services, and retail. Ipsos conducts this monthly survey for Lloyds Bank.
Lloyds Bank's positive analysis follows data from the Insolvency Service this month, which showed that the number of construction company bankruptcies fell by a third in May. Despite the positive results, Freddy Khalastchi, a partner at Menzies, told Construction News that the industry is "far from out of the woods." He added that amid rising costs, payment delays, and tighter financing conditions, construction companies must closely monitor their financial positions and seek advice early if warning signs emerge.
