According to the RICS UK Construction Market Survey, total construction workloads declined for the third consecutive quarter with the net balance falling to the lowest level in the survey’s history with 47% more Chartered Surveyors reporting a fall than a rise.

Private housing workloads remained the weakest category with 66% more Surveyors reporting a fall than a rise. The picture for public sector housing was a little better but the latest reading of -20 in the net balance remains consistent with reductions in the levels of new starts.

Private commercial and industrial workloads fell sharply over the fourth quarter with infrastructure remaining a little more resilient. However, workloads in this area still declined at the fastest pace in the survey’s history.

Confidence in prospects for the next twelve months is also at its gloomiest with a record 45% of Chartered Surveyors expecting workloads to fall rather than rise.

RICS chief economist Simon Rubinsohn said:

“The pressure on the construction sector shows no signs of abating at the moment. Indeed, if anything it appears to be intensifying as the weakness in the housing sector spreads to both commercial and industrial workloads. With profits being squeezed, significant job cuts are likely to result.

“The danger is that this will lead to a permanent loss of skilled labour which will leave the construction sector ill-equipped to play a meaningful role when the economy does begin to emerge from the current recession.’’