With new data signalling a subdued level of growth within the UK construction sector, companies are being encouraged to consider the flexibility that asset finance provides.
According to the May 2018 construction purchasing managers’ index (PMI), a survey of purchasing managers, the UK construction industry is entering the summer in a tenuous position.
The data revealed that new orders for construction projects dipped for the fourth time in the past five months, with respondents identifying political and economic uncertainty, subdued retail sector performance and fragile business confidence as key factors behind the drop.
Job creation hit a four-month low and businesses continued to report a skilled-staff shortage. There were modest rises in the commercial, residential and civil engineering sub-sectors, with the seasonally adjusted IHS Markit/CIPS UK construction PMI recorded as 52.5, the same as April.
Mark Kozo, Head of Marketing at Portman Asset Finance, said: “When a sector is showing signs of sluggish growth it’s important that businesses invest now, so they can be in a strong position when market conditions improve. In construction, for example, a sustained period of good weather can boost activity and confidence.
“Asset finance gives companies the opportunity to secure new equipment that can grow their business or help tide them over, while at the same time preserving their cashflow. With flexible repayment terms and low rates available, it eliminates the risk of using up their own working capital.”
If you would like to discuss securing affordable finance to help fund your construction company, call our expert Account Managers on 01604 321 995. Details of our finance products for the construction industry are available here.