Construction sector sentiment reached near record highs recently, and general business sentiment continued to rise as the UK economy reopened more. Improving construction workload powers this optimism. However, significant supply‑side issues around workforce constraints and materials procurement muddy the waters with the belief that everything is due to higher output levels across all sectors. 

Activity is expected to remain busy through to the end of the second half of 2021, as consumer demand returns across a larger number of economic sectors. Business sentiment conditions therefore are likely to remain elevated as a mixture of expected and real improved sales and revenue occur over the remainder of this year.

But real risks remain, of further bumps in the road from the pandemic and a potential return of restrictions in some form should events deteriorate again. What will become clearer is the proportion of the rebound that is from the short-term cyclical spike, and that which is driven from the strength of underlying demand and structural factors propelling economic activity.

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