Many UK business sentiment indicators recorded historical lows, by some way, at the nadir of the pandemic lockdown. Many of these indicators stretch back decades, underscoring the extraordinary impacts of this period. Economic momentum immediately prior to the coronavirus pandemic was weaker than the 2019 trend, and may have already started to contract going into 2020.

The UK’s GDP yearly growth rate at Q2 2020 fell precipitously, recording its largest ever fall at -21.5%. Adding this to the negative Q1 2020 rate of change put the UK officially into recession. Subdued consumer sentiment and excess precautionary saving was a strong theme during the lockdown period, and this on-going trend will continue to act as a drag on economic activity in the UK. Similarly, uncertainty dents business confidence, and with it the likelihood of proceeding with capital investment. For there to be substantial levels of construction activity relies on private sector confidence and its investment. Some projects have been paused as a result of the economic turbulence, and further consequences for workload can be expected should uncertainty linger.

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