Construction market suffers its biggest fall since 2009

Bad news for the construction market, which has suffered its biggest fall since 2009, the main problem is the coronavirus pandemic. Activity rates in the construction market decreased by almost 50 points when comparing the months of February and March of this year.

The seasonally adjusted activity index fell to 39.3 in March, while in February it was at 52,6. Plus, there are significant reductions in the commercial area, which remains at 35,7, while the residential area seems to be the least affected, maintaining an activity index of 46,6.

“The coronavirus has had a great impact on the construction industry.”

Emergency measures taken by the UK government to try to stop the spread of the virus have had consequences. Tim Moore, director of economics at IHS Markit, expressed his opinion on the matter: “Thanks to the data for March, we can analyze the true impact that the Coronavirus pandemic has had on the construction industry in the UK.”

“It is evident that the main reason for this serious drop in activity has been the measures imposed by the UK government to prevent the spread of the Coronavirus. Quarantine and social distancing have generated a great decrease in demand, and this has done that the activity rates drop so much.”

“The forced closure of construction sites and quarantine measures will undoubtedly have a much bigger impact on the industry; this could extend several months after the quarantine is over. We conducted surveys to the workers in the sector, and they expressed their doubts about being able to continue in the projects that were being built, many of them even value the possibility of looking for a new job.”

“However, the construction industry supply chains will be primarily responsible for the provision of essential activities such as infrastructure maintenance, repairs and security, and supporting public services during the days of quarantine.”

“The construction industry has overcome worse things.”

For his part, Gareth Belsham, director of the national property consultancy and Naismiths Surveyors, said: “Although we are going through a bad time, we have some comfort knowing that the construction industry has been through worse situations. Coronavirus will not end an industry as durable as ours.”

“In 2008, during the financial crisis, the construction industry in the UK suffered much more than today. The Coronavirus is just a momentary obstacle that we are going to overcome very soon. But not everything is so positive; there are still things that are not left entirely clear on measures taken by the government. Buildings listed as essential continue to operate despite the measures, but the definition of “essential” for the government is still unclear to members of the industry.”

“In conclusion, we expected something much worse and although what is to come is difficult, we know that we have the necessary experience to overcome it. Certain sacrifices will be necessary, but the result will be worth it.“