Contractors could be entering an extended Summer of elevated demand for their services, as markets that are traditionally strong consumers of their services begin to pick up. Recovery in general is fragile and government austerity measures have sent confidence plunging in some sectors, but contractors often see an upturn in demand in similar circumstances, as they provide a short-term, low risk solution to increased capacity. So, uncertainty that prevents firms from recruiting employees tends to work in contractors’ favour.
Key findings:
- The Monster Employment Index bounces back after its fall last month, showing increased demand for contractors across the board.
- Fortunes in financial services are picking up, according to the CBI/PwC Financial Services Survey, meaning IT contractors can expect improved demand.
- Services output weakens, but manufacturing and construction stay firm in this month’s Markit/CIPS Purchasing Managers Index.
- The oil and gas sector continues to recover, leading to greater demand for contractors in engineering, oil & gas, offshore and IT.
- Manufacturing remains strong, with export and domestic demand fuelling output, according to the EEF/BDO Manufacturing Outlook.
Tags: Accountancy, Bookeeping
Great post, but given that the government’s austerity measures are starting to bite, and fuel prices have risen by 7% in some cases, how do you feel this is affecting contractors?