Following a report by Savills today (July 12th) that commercial development activity fell by 2.8 per cent in June, director-general of the Federation of Master Builders Richard Diment commented that the figures were "disappointing but probably not overly surprising."
With clarity not yet provided on the government's plans and an order to local authorities that told the bodies to put unsigned contracts on hold, "the recovery is very fragile," he stated.
"What we certainly want is a climate which continues to encourage the public sector to invest," Mr Diment said, explaining that the spending cuts that will be imposed by the country's leaders in an effort to reduce the nation's budget deficit will have an impact on the construction industry.
However, George Osborne announced recently that the government was keen not to tighten expenditure to the point that the effect on the sector was "disproportionate", the expert noted.
Posted by Charlie Parkin