In May the RIBA
Future Trends Workload Index remained at +5 for the third consecutive month.
While practices in
London remain pessimistic about future workloads (balance figure -2) and the
Midlands and East Anglia slipped to zero (from +9), the North of England
continued its positive run (balance figure +16) along with Wales and the West
(+8). The South of England remained steady with a balance figure of +3.
In terms of practice
size, medium-sized practices (11 - 50 staff) remain the most positive,
returning a balance figure of +28, and small practices only recorded a
one-point fall, down to +2. Large practices (51+ staff) showed a significant
increase in confidence, returning a balance figure of +20 in May after two
months of recording zero.
The community sector
remained pessimistic (returning a balance figure of -4 compared to -2 last
month), however the private housing, commercial and public sectors all showed a
new level of optimism. The private housing sector workload forecast rose by four
points (to +8), the commercial sector rose by five points (to +4) and the
public sector recovered from -3 to zero.
The RIBA Future
Trends Staffing Index showed a slight decrease to +1, from +4 compared to April
2019.
RIBA Head of
Economic Research and Analysis, Adrian Malleson, said: “Commentary from
practices this month continued to reference difficulties caused by the lack of
clarity around Brexit. Clients remain cautious, fees are under pressure, and
projects are being put on hold or delayed. But some practices seem more
optimistic, reporting an increase in enquiries, a resilient domestic sector and
a reluctance to acquire work through fee discounting.
“This complex
picture suggests an architectural market that is unsure of future workloads.
Many practices face significant downward pressure and uncertainty is a common
theme.”
