Construction firms turned sharply more upbeat in July as stronger customer demand and improving financial conditions lifted confidence to its highest level in more than a year.
The latest Lloyds Business Barometer published today showed overall confidence in the sector jumped 10 points to 56%, well above the 12-month average of 47%.
More than two thirds of industry firms now expect business activity to increase over the next year, with 65% planning to take on more staff, up from 55% in June.
Confidence in firms’ own trading prospects remained strong at 68%, while optimism about the wider economy climbed to 53%.
More than half of construction firms said stronger customer demand was the main driver behind their improved outlook, while 38% pointed to easing interest rates and better financial conditions.
Lloyds director and head of construction Max Jones said: “The latest rise in confidence suggests construction firms are becoming more willing to plan beyond the next project.
“After a period of uncertainty, it’s encouraging to see that firms are beginning to invest in people and the capacity they’ll need to support future demand, signalling a sector that’s looking ahead rather than reacting to today’s market conditions.”
Across all UK sectors, overall business confidence rose five points to 49%, a four month high, helped by lower global energy prices, steady interest rates and improving geopolitical conditions during the survey period.
The Lloyds survey was carried out between 1 and 16 July. Net balances are calculated by deducting the percentage of negative responses from the percentage of positive responses.
Construction firms turned sharply more upbeat in July as stronger customer demand and improving financial conditions lifted confidence to its highest level in more than a year.
The latest Lloyds Business Barometer published today showed overall confidence in the sector jumped 10 points to 56%, well above the 12-month average of 47%.
More than two thirds of industry firms now expect business activity to increase over the next year, with 65% planning to take on more staff, up from 55% in June.
Confidence in firms’ own trading prospects remained strong at 68%, while optimism about the wider economy climbed to 53%.
More than half of construction firms said stronger customer demand was the main driver behind their improved outlook, while 38% pointed to easing interest rates and better financial conditions.
Lloyds director and head of construction Max Jones said: “The latest rise in confidence suggests construction firms are becoming more willing to plan beyond the next project.
“After a period of uncertainty, it’s encouraging to see that firms are beginning to invest in people and the capacity they’ll need to support future demand, signalling a sector that’s looking ahead rather than reacting to today’s market conditions.”
Across all UK sectors, overall business confidence rose five points to 49%, a four month high, helped by lower global energy prices, steady interest rates and improving geopolitical conditions during the survey period.
The Lloyds survey was carried out between 1 and 16 July. Net balances are calculated by deducting the percentage of negative responses from the percentage of positive responses.
