Construction Breakfast: State of the economy 2020
We were delighted to kick-off this year’s packed programme of Construction Breakfast events on 7th January, with a typically insightful presentation from Donna Kehoe, the Bank of England’s agent for the South West.
Following a tasty breakfast, networking and introduction from Gregg Latchams’ Head of Construction David Morris, Donna provided the room of industry professionals with an update on the state of the UK economy for the new year and a summary of recent publications from the Bank of England.
Amongst the predictions presented, Donna explained that though global economic growth is expected to remain slow, there are reasons for optimism, and it is forecast to recover somewhat by 2022.
Whilst business investment levels have taken a serious hit since the 2016 referendum, the UK economy is growing, which is unprecedented alongside falling investment. Staff pay is still increasing, and in fact it’s experiencing the highest growth rate for a decade.
According to the Bank of England’s December 2019 Financial Stability Report, stress tests carried out on the UK’s major banks last year showed that in their current status, they are able to withstand a severe economic shock. Donna explained that the results of the tests showed three times the level of resilience of these banks than in 2007.
Following the presentation, the floor was opened to a lively debate, with questions covering a abundance of topics from the viability of the Government’s timescale for trade deals to whether an adversity to risk from the banks is at the cost of potential economic prosperity.
Head of Construction at Gregg Latchams, David Morris, said: “What a way to kick-off our exciting programme of Construction Breakfasts for 2020 with such a valuable presentation from Donna, who we were delighted to invite back for a third time.
“Despite economic uncertainty remaining, there is an evident shift in the certainty direction, and I urge my peers to feel positively about 2020 and the progress that we can see in the construction sector this year.
“As ever, it was brilliant to see so many experts in the room sharing insights and experiences unique to our industry.”
The next Construction Breakfast will take place at The Watershed on Tuesday February 4th, 2020, with Gregg Latchams’ David Morris and Marcus Lavell looking at key aspects of construction contracts, and in particular those more uncertain areas where further advice is often required but not always sought. Registration will open shortly.