The Bibby Financial Services Business Factors Index, which measures construction activity in the UK, has found that the surge in building in the first quarter has not lasted.
The building sector, particularly commercial development, experienced a strong recovery in early 2010. However, the industry’s fortunes were not so positive in April and May, but were showing signs of stabilising once more in June.
The index questioned construction firms in the UK and found that 31 per cent said they agreed that conditions were very tough in the market. In addition, 41 per cent said that they believed it would be three years until the economy is fully back on track.
Despite this negative feedback, smaller developers seem to be doing a little better in the current conditions. Only one in five small firms reported that conditions for them are tough and 12 per cent said their business was actually thriving at the moment.
This suggests that the market for smaller commercial development projects is still relatively healthy, compared to the market for firms with turnovers of more than £1 million. 
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