Despite this slight easing, experts warn the sector remains under pressure due to high inflation, rising interest rates, cash flow challenges, and persistent supply chain disruptions.
Kelly Boorman, national head of construction at RSM UK, described the situation as a “perfect storm” of overtrading risks and under-resourcing.
“Many firms are in limbo as they hold onto larger workforces and absorb additional costs in anticipation of future project mobilisation,” she said.
“However, with key government announcements still pending, volumes aren’t materialising quickly enough to sustain this level of overhead.”
She added that amid uncertainty around the upcoming Autumn Budget, delayed capital deployment and limited…