Construction faces the same challenge, alongside pressure from increasing costs and a lack of available supplies.
On a positive note, claimant count levels dropped somewhat in May, likely as more people were able to return to work. However, they still remain substantially higher (114%) compared to pre-covid levels in March 2020. We are also reaching a pinch-point at the start of July, where much of the support (including furlough), is starting to be reduced. Many businesses, especially those that remain closed, will be unable to afford this added financial cost and may need to make redundancies.
Finally, GVA remains unchanged from April’s forecasts and will be updated in July.