Challenge on for construction sector to sustain spring optimism, says Lancashire-based advisor

By MHA

12 May 2025

Website
Joe Sullivan_MHA_small.jpg.jpg

The North West construction sector faces a huge battle to achieve growth as it grapples with the effects of high taxes, growing costs and investor uncertainty.

That’s the view of a leading advisor to the sector after a key business confidence index for the industry showed only marginal growth in April.

Joe Sullivan, partner for construction and real estate at accountancy and business advisory firm MHA, was commenting after the S&P Global UK Construction PMI (purchasing manager’s index) reached 46.6, slightly up from 46.4 in March, but still well short of the magic 50.0 mark that signifies growing confidence and business performance.

Joe, who advises property and construction businesses across the region, said: “While the economic landscape has not fundamentally shifted, the slight uptick in construction PMI in April was to be expected as the warmer weather in spring tends to be good for the sector.

“Despite the minimal rise, there is little reason for celebration as PMI still remains below the 50.0 threshold, suggesting that there is some way to go before the industry sees a significant return to activity.

“All three subsectors continued to decline, although the residential sector saw a less steep contraction than at the beginning of the year.”

Joe added: “As we progress through the year, we may see an increase in PMI activity as interest rates start to fall and an easing of the backlog of Gateway 2 applications, associated with new building safety legislation. However, this rise is likely to be short-lived.

“There will always be companies that thrive in any market, but in general the sector will continue to bumble along the bottom as it grapples with the high tax environment, associated increasing costs and the uncertainty for investors caused by the tariffs.”

MHA, the UK independent member firm of Baker Tilly International and 13th largest accountancy group in the UK, has Lancashire offices in Preston and Lancaster.

Enjoyed this? Read more from MHA

Latest news

1

PM+M announces another 19 promotions across the firm PM+M promotions

PM+M announces another 19 promotions across the firm

27 Oct 2025

2

Celebrating 20 years of connecting the county LBV 20 Celebration Guests

Celebrating 20 years of connecting the county

27 Oct 2025

3

BAKO named 'Supplier of the Year' at awards BAKO Supplier of the Year

BAKO named 'Supplier of the Year' at awards

27 Oct 2025

4

St Annes thrives with strongest August footfall in years St Annes Square footfall

St Annes thrives with strongest August footfall in years

26 Oct 2025

5

BAE Systems workers vote for strike action BAE Systems production

BAE Systems workers vote for strike action

23 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Lancaster District Business Support Expo
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
29 Oct 2025 - 29 Oct 2025

Lancaster District Business Support Expo

The Platform, Morecambe, LA4 4DB

10:00 - 15:00

Chamber Breakfast Networking – November
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
06 Nov 2025 - 06 Nov 2025

Chamber Breakfast Networking – November

Porsche Centre South Lakes, Carnforth, LA6 1FW

08:30 - 10:30

Lancashire Police business update with The Police and Crime Commissioner
Lancs-cham-logo.jpg.jpg
LBV Hub Roundtables
10 Nov 2025 - 10 Nov 2025

Lancashire Police business update with The Police and Crime Commissioner

Lancaster Castle, Lancaster, LA1 1YN

14:00 - 16:00

AI, Creativity, and what it means to be human
2.jpg.jpg
LBV Hub Networking
11 Nov 2025 - 11 Nov 2025

AI, Creativity, and what it means to be human

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:00

Beyond the Brand: Building trust through values and integrity
1.png.png
LBV Hub Networking
11 Nov 2025 - 11 Nov 2025

Beyond the Brand: Building trust through values and integrity

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:00

The Business Network Central and East Lancashire
LBV Hub Networking
13 Nov 2025 - 13 Nov 2025

The Business Network Central and East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

The AI Lab: E-commerce
Ai Lab ecommerce (1).png.png
LBV Hub Seminars
14 Nov 2025 - 14 Nov 2025

The AI Lab: E-commerce

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 11:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin