The CLC attributes this to demand stagnating, noting the ongoing decline in housebuilding activity over the past six months.

The poor weather and strikes over the summer also contributed to a slowdown. 

Despite this, some concerns persist around the supply of semi-conductors — particularly for certain electrical components — despite the uptick in worldwide capacity.

The council has also seen an increase in the number of insolvencies and administrations, an area the CLC is continuing to monitor.

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There are reports of more discounts in the market, with the price of timber, some plastic, and energy-intensive products reducing. 

Although there are signs of improvement in some regions in September, the key economic drivers — inflation, higher cost of living, and higher interest rates — is expected to remain a significant challenge for construction output for the rest of the year.

CLC also believes that with the availability and cost of financing options progressively limited, commercial behaviour is likely to harden — putting pressure on SME companies reducing cash flow capacity and making liquidity a greater challenge.