RISING costs and uncertainty relating to Brexit are to blame for the sharp drop in output growth in January 2019, the Federation of Master Builders (FMB) has said in response to the latest Purchasing Managers’ Index data (PMI).
The Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Manager’s Index incorporates survey results provided by construction firms throughout the country.
A reading above fifty suggests the construction sector is expanding, while a reading below fifty suggests the construction sector is in contraction.
The January 2019 PMI data revealed a fall from 52.8 in December to 50.6 in January, against the neutral reading of 50.0. January data pointed to a loss of momentum for the UK construction sector, with business activity growth grinding to its weakest for ten months.
All three categories of construction output recorded weaker trends than those reported in December.
Residential work was the strongest performing area, although the latest expansion was only modest and the slowest seen since March 2018. Civil engineering activity increased marginally, with the rate of growth much softer than December’s 19-month high.
Commercial work was the weakest performing area of construction output in January. Latest data indicated a decline in work on commercial construction projects for the first time in ten months. Anecdotal evidence suggested that Brexit-related anxiety and associated concerns about the domestic economic outlook continued to weigh on client demand.
New business growth eased to an eight-month low in January.
Construction firms widely commented on softer demand conditions and longer sales conversion times, reflecting a wait-and-see approach to spending by clients. Concerns about the near-term outlook for new projects resulted in more cautious staff hiring policies at the start of 2019. The latest survey pointed to the slowest rise in employment numbers since July 2016.
However, construction firms remain positive about the outlook for business activity in 2019. Around 41% of the survey panel anticipate a rise in output, while only 16% forecast a fall.
Optimism had, however, fallen month on month. Large-scale civil engineering projects were cited as a key source of optimism, while Brexit uncertainty was the most commonly cited concern.
Tim Moore, Economics Associate Director at IHS Markit, which compiles the survey: “UK construction growth shifted down a gear at the start of 2019, with weaker conditions signalled across all three main categories of activity.
“Commercial work declined for the first time in ten months as concerns about the domestic economic outlook continued to hold back activity.
“The latest survey also revealed a loss of momentum for house building and civil engineering, although these areas of the construction sector at least remained on a modest growth path.”
Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply said: “The sector suffered a sharp drop in output growth in January, and the softest rise in purchasing volumes since September 2017, as Brexit continues to hamper progress and dampen client confidence.
“The biggest shock came in the form of job creation which has managed to suffer the slings and arrows of Brexit highs and lows with solid hiring since the referendum result. Employment rose at the slowest rate since July 2016 and with optimism also in short supply, the sector only needs a small nudge to tip it closer to a recession.”
Commenting on the results, Brian Berry Chief Executive of the FMB, said: “The latest PMI data show a slowdown in growth in construction with business activity growth easing to its weakest for ten months. The ongoing political uncertainty is partly to blame for this setback.
“Political uncertainty is the enemy of construction firms that rely on the spending power of homeowners to commission home improvement projects. The UK is set to leave the EU next month, and yet we are still none the wiser about what the future holds. Given these intense headwinds, it should not be surprising that the sector suffered such a sharp decline.”
Mr Berry continued: “Alongside the political uncertainty, the cost of doing business is also rising for construction firms up and down the country. Material prices have been rising steadily since the depreciation of sterling following the EU referendum.
“Looking ahead, material prices are expected to continue to cause a headache for the construction industry with recent research from the FMB showing that 87% of builders believe that material prices will rise in the next six months. What’s more the construction skills crisis means that key trades are extremely difficult to recruit and the upshot of this is rising wages in construction.
“Tradespeople know they can command higher salaries than they did previously as workers are scarce, and this means a squeeze in margins for firms. This will only worsen if the post-Brexit immigration system that the Government has planned goes ahead.
“If the sector isn’t able to draw upon crucial EU workers of all skill levels, who have so far served to mitigate this shortage, the slowdown of growth will continue.”
Welsh Waters in call for improvement following increase in pollution incidents
NATURAL RESOURCES WALES (NRW) is calling for Dŵr Cymru Welsh Water to “step up and take action” after its annual environmental performance reports for water companies highlighted an increase in pollution incidents.
NRW also found a decrease in compliance with environmental permits for sewage discharges.
The deterioration in performance by Dŵr Cymru Welsh Water has led to the company being downgraded from four-star – industry leading – company status last year to three-star (good company) under 2021 Environmental Performance Assessment metrics (EPA).
The report reveals that 83 sewage-related pollution incidents were caused by Dŵr Cymru Welsh Water assets last year, compared to 77 the previous year.
Two of these pollution incidents were categorised as having a serious (High) environmental impact.
There was also one serious (High) incident from a water supply asset.
It also shows that numeric compliance against permitted discharges dropped from 99.7% to 98.3% and self-reporting of incidents dropped from 80% to 76%.
Expectations for improvements are outlined in the reports, including targets to reduce the number of pollution incidents year on year, aiming towards zero.
The report said the although the total sewage pollution incidents metric remained green, in 2021 “there has been an increase of six incidents -from 77 in 2020 to 83 in 2021. ”
“It is disappointing Dŵr Cymru have not sustained their improvement in this metric from last year”
The NRW performance report states: “The overall performance for water supply incidents is unacceptable.”
“We are calling for urgent action from Dŵr Cymru after 2021 saw the sixth consecutive year where the number of incidents from water supply assets increased.”
“We welcome the inclusion of serious incidents from water supply assets in the serious pollution incidents EPA metric from 2021 to bring more focus on this area of performance.”
Ceri Davies, NRW’s Executive Director for Evidence, Policy and Permitting said:
“Water companies have a responsibility to the environment, as well as their customers, and they must take these incidents – and the impact they have on our water quality – seriously.”
“Over many years water companies in Wales have invested significantly and improved their environmental performance so we are challenging their recent performance and asking them to set the standard for the water sector by attaining industry leading status, whilst also showing leadership in responding to the biodiversity and climate crises.”
“The decline in environmental performance is disappointing and we expect them to respond positively with renewed effort, and to drive forward improvements.”
“Earlier this week, we published our storm overflow roadmap, in collaboration with the water sector and Welsh Government, which outlines an action plan of commitments from all those involved to reduce the impact of storm overflows on our rivers in Wales.”
“This sits amongst a number of initiatives across other sectors including rural land use and industry, to tackle the numerous threats facing our rivers.”
“Improving water quality for the long term requires a collective effort from all involved, working together to identify catchment-scale solutions to contribute to healthy rivers.”
Welsh Water has not commented as yet on the report.
M&S opticians opens its doors in Llanelli Parc Trostre
MARKS & SPENCER has opened the newest branch of its M&S Opticians service, located in the retailer’s popular Llanelli store.
M&S Llanelli Parc Trostre will offer customers an expert opticians service, which includes a full eye health examination (OCT scan) for every eye test booked at no additional fee.
Free eye tests are available as an opening offer, as well as 15% off glasses and sunglasses for Sparks customers. There’s a wide range of designer brands to choose from including Mulberry, Prada, Joules, Kate Spade, Oakley, Police, Maui Jim along with leading lens manufacturers – Zeiss and Nikon.
Expert advice on contact lens fitting and wearing is also on hand, alongside a contact lens home delivery option. The store will also be home to a hearing aid audiologist who will be offering free hearing health checks along with latest hearing aid technology, including rechargeable models and mobile connectivity.
M&S Llanelli Parc Trostre is the second optician service to open in Wales following a successful trial across ten UK cities, during which the service received a customer satisfaction rate of 96% and a customer recommendation rate of 96%.
M&S Llanelli Parc Trostre Store Manager, Aled Bonnell, said: “We’re always looking for ways to make shopping at M&S even more rewarding and feedback from our trial showed that customers loved the convenience of having an Opticians service in our store. We’re really excited to be opening our M&S Opticians in Llanelli and hearing what our customers think. The choice of different brands we’re offering is second to none and we have brilliant opening offers to suit all budgets.”
Public advised to avoid rail travel as biggest strike in 30 years about to start
Talks between senior rail industry figures and union leaders were taking place through the day to try to avoid industrial action, although with little optimism from either side or government that any agreement could be reached.
The first of three 24-hour walkouts by 40,000 RMT members, including signallers, maintenance and train staff, will start just after midnight on Tuesday morning, with only one in five trains running on strike days and halting services altogether in much of northern and south-west England, Wales and Scotland.
Only four rail routes will be operating in Wales on the three strike days and at a reduced service. Services will start at 7am and stop at 6pm.
• An hourly service between Radyr and Treherbert
• An hourly service between Radyr and Aberdare
• An hourly service between Radyr and Merthyr Tydfil (apart from on Saturday, June 25, when it’s between Radyr and Pontypridd)
• Reduced services on the mainline between Cardiff and London from 7am to 6pm. The last train from London is at 4.27pm.
Major train stations including Swansea, Bridgend, Carmarthen, Llanelli, Aberystwyth, Holyhead and Llandudno will have no services. There will only be limited services from Cardiff, Newport, Pontypridd and stations on the Valley lines to Merthyr, Aberdare and Treherbert.
Full details of the timetable for the days of the strike have been published.
Customers can find these on the TfW, Traveline and National Rail websites using the journey planners.
Customers with existing non-season tickets valid for travel from Tuesday 21 June to Saturday 25 June can use those tickets anytime between Monday 20 June and Monday 27 June. Alternatively, customers can claim a full refund, with no admin fee charged. Season ticket holders can apply for compensation via Delay Repay.
In the meantime, TfW has suspended sales of Advance tickets for the first three strike dates in order to minimise the number of people disrupted. Customers are advised to continue to check the TfW or Traveline websites, and those of other operators, for updates.
Transport for Wales says passengers should not travel by train during the three strike days on June 21, 23 and 25. There are no strikes on June 20, 22, 24 and 26 but Transport for Wales said people should only travel if essential as services would still be affected.
Staff working for Transport for Wales are not affected by the strike. But RMT staff working for Network Rail which manages the infrastructure across the UK are going on strike meaning that services across the UK are all affected.
Only services in Transport for Wales routes in one part of the Valleys and services on the mainline into Wales from London going as far as Cardiff will be operating. There will be no services west of Cardiff.
The strikes, over pay and attempts to reform the rail industry with post-Covid work patterns hitting commuter revenues, will cause six days of disruption, with trains limited to one an hour between 7.30am and 6.30pm on major intercity and urban routes. Services will start later and be reduced on subsequent days.
The action is being taken by Network Rail employees and onboard and station staff working for 13 train operators in England. The RMT said thousands of jobs were at risk in maintenance roles and that ticket office closures were planned, on top of pay freezes during a time of high inflation.
The walkout by signallers will have most impact, particularly in rural areas, leading to line closures in places such as Wales, where there is no direct dispute with the train operator. Most operators have told passengers to travel only if necessary on strike days. Northern Rail has advised passengers not to travel for the whole week.
While Conservatives have attempted to associate the union-backed Labour party with the strikes, Labour has pointed out that the transport secretary, Grant Shapps, and other ministers have refused to take part in talks.
Unions asked to meet ministers, saying the Treasury and Department for Transport control contracts and funding. Shapps said it was up to employers to negotiate, although train operating companies have been told they cannot offer pay rises, according to industry insiders and unions.
The shadow transport secretary, Louise Haigh, speaking on the BBC Today programme on Monday, said it was imperative that the government stepped in. She said: “Not only are they boycotting the talks, they are actually hobbling them .”
However, Simon Clarke, the chief secretary to the Treasury, told the BBC: “There’s no point giving false hope, if you like, that these strikes can be avoided. At this stage it is likely that they will proceed.”
The business secretary, Kwasi Kwarteng, is set to table legislation to allow agency workers to step in during strikes, which could be enacted by late July to apply to future industrial action. The RMT said it would be impossible to draft in people to replace skilled rail workers and a spokesperson said it was “playing to the gallery”.
Shapps said on Sunday it was “crazy” to suggest that the Tories wanted rail unions to go on strike, after Labour accused the government of encouraging the walkouts to go ahead in order to stoke division. He said the strikes were “unnecessary” and a result of trade union leaders “gunning for” a fight, accusing the RMT of planning to “punish millions of innocent people”.
Last week, Shapps told rail staff they risked “striking yourself out of a job”. Network Rail bosses estimate the stoppages will cost the industry about £150m in lost revenue.
Talks have been ongoing between Network Rail and the RMT but bosses admitted there was little hope of a breakthrough.
The walkouts are on 21, 23 and 25 June and a special timetable will be in operation from Monday, with some evening services curbed, until Sunday. About 20% of trains will run on mainlines and urban areas.
Adding to the commuter misery, a separate London Underground strike will also bring much of the capital’s transport to a halt on Tuesday. About 10,000 members of the RMT will walk out for 24 hours, closing most tube lines. Transport for London has advised people to avoid travelling on all of its services if possible, with buses likely to be crowded and slow on jammed roads.
The London overground and Elizabeth lines will also continue to be affected by the national rail strike throughout the week.
Other unions may join the rail strike later in the summer, in a move that could halt services altogether. The TSSA union, which represents control room staff and managers who step in to run contingency signalling, is balloting members at Network Rail and announced strike votes at more train operators last week.
News2 days ago
M4 closed westbound following lorry fire near Swansea
Sport6 days ago
Reds leave it late to beat Celtic
Sport1 week ago
Reds begin league campaign with win over Lido
News1 week ago
Police appeal after Llanelli assault: victim required hospital treatment
News23 hours ago
New ward extension opens at Werndale Hospital