ACTIVITY for small and medium-sized building firms in Yorkshire may be showing signs of a downturn, according to figures released in the Federation of Master Builders' (FMB) State of Trade Survey for the fourth quarter of 2003.

The region looks to be following the trend seen throughout much of the southern half of the country, where workload and employment levels show no change from the previous quarter.

More than three-quarters of Yorkshire builders reported lower or static workloads during the last three months of 2003, with under a quarter reporting an increase.

The results are well short of the workload predicted in the previous quarter's survey due largely to a slackening of domestic repair and maintenance work - the type of work in which the largest proportion of FMB survey respondents are engaged.

Future growth looks much the same with flat workloads again predicted for the first three months of 2004. A little more than two out of ten Yorkshire and Humberside builders reported an increase in the level of new business inquiries, which is lower than the national average (32 per cent).

Ron Wilson, FMB regional director, said: "The results are much weaker than those for the same period in 2002, but they are broadly comparable to those obtained from the fourth quarter 2001 survey, after which 2002 turned out to be a buoyant year for small and medium-sized building firms.

"We would normally expect some weakening in the final quarter as the winter months are traditionally a quieter time for building work. One more positive sign is that employment levels are relatively stable and are expected to remain so over the longer term.

"We will need to see the outcome of the next quarter's survey before drawing any firm conclusion on future prospects for the building market in Yorkshire."

Updated: 11:56 Friday, February 06, 2004