Covid-19 will mean that 2020 will go down in history as the pandemic has impacted on the social and economic life, ravaged the UK economy producing an unprecedented drop in GDP far exceeding the “Great Recession” of 2008-10.
Following the introduction of the lockdown Construction output fell by 40.1% overall in April 2020. This represents the largest monthly fall on record since the monthly records began in January 2010.
The pandemic has had a great effect on the whole economy, additionally we are still leaving the EU.
According to the latest CIPS/IHS Markit update there is confidence in the construction section, at least in the short term. The UK Construction Total Activity Index shows an increase in confidence across June and July, to give its highest rating in 5 years. The phased restart of work on site has helped to lift output volumes and boost business confidence. At the same time, new orders stabilised after three months of sharp declines and purchasing activity expanded at the fastest rate since December 2015.
All sectors have suffered greatly through this pandemic, infrastructure the least affected and the urgent need for increased distribution space assisting private industrial. However, in the growth by sector table the telling statistic is that come the end of 2022 total new work will still be 7% lower than at the start of 2020.
In this report we look at its impact on socio, macro and construction industry related levels from the pandemic and the upcoming Brexit. This report assumes that there will be no extension of the transition period of Brexit and that no significant trade agreements (i.e. a hard Brexit) with the EU will be in place. While in normal times this would have a significant impact on the economy at this moment in time it will be inconsequential when compared to the effect of the pandemic.
To view the report click here.