In October 2018, the
RIBA Future Trends Workload Index increased slightly to +11, up from +7 in
September, but for the second consecutive quarter the value of work in progress
declined – indicating the impact of ongoing Brexit uncertainty.
The North of England
regained optimism after dipping significantly last month with an increase from
+12 to +25. London remains the most cautious at +3 but this is up slightly from
October’s figure of +1. The Midlands and East Anglia returned a balance
figure of +9, lagging slightly behind the South of England (at +12) and Wales
and the West (at +13). The biggest disparity remains between the North of
England and London.
Large practices (with
51+ staff) remained the most positive in October, returning a workload balance
figure of +70. Medium-sized practices (with 11 - 50 staff) returned a balance
figure of +24, and small practices (with 1 - 10 staff) returned a balance figure
of +6.
The private housing
sector increased very slightly to +9 from +7 in October, and the public-sector
(balance figure -2) and community sector (balance figure -0) both also
experienced positive movement, but practices continue to be circumspect about
any significant growth. The commercial sector forecast saw the greatest
movement, regaining positivity after a dramatic fall the previous month, rising
to +4 from -2 in October.
The RIBA Future Trends
Staffing Index rose again, standing at +10 in October 2018, up from +4 in
September. The staffing forecast for large practices (51+ staff) was down from
+43 in October to +29 in September 2018 and for small practices (1-10 staff) it
was +6 (up from +4) but it was medium-sized practices (11 - 50 staff) which saw
the most dramatic increase in staffing forecast, from zero the previous month
to +29.
Large and medium
practices seem to feel equally confident about their ability to maintain and
increase staffing levels, whilst smaller practices remain much less confident
about taking on additional staff in the short to medium term.
RIBA Executive
Director Members, Adrian Dobson, said: “Commentary received from our
participating practices suggests that demand for architectural services is
continuing to remain stable with less of a divide across the regions.
"However, the overall picture seems to be one of a
market that is lacking growth momentum. The economic unease generated by the
on-going and increasing uncertainty around Brexit remains.
"With the value
of work in progress declining and economic anxiety clouding the willingness of
clients to commit to projects, Brexit continues to be a big impact on
architects’ confidence.”
