Brexit squeeze continues to take its toll on UK construction sector - PBC Today
- Date: 02/10/2019
Building activity in Q3 2019 fell at the second-fastest rate since April 2009, as the UK construction sector remains stuck in a downturn, according to the latest Construction PMI figures. According to Construction PMI figures, a historically steep drop in new orders was also registered, while firms scaled back employment at the fastest rate since the end of 2010 due to unfavourable demand, client hesitancy and low confidence.
The headline seasonally adjusted IHS Markit/CIPS UK Construction Total Activity Index posted 43.3 in September, down from 45 recorded in August, signalling a more severe downturn in building activity across the UK.
The Construction PMI deterioration was the second-strongest since April 2009 and broad-based across all three broad categories of construction work.
As has been the case since March, commercial activity was the worst-performing segment. Here, the contraction gathered pace and was marked overall.
Following the release of today’s (2 October) Construction PMI figures, Phil Harris, director at BLP Insurance, commented: “With figures showing little forward momentum after a fifth consecutive month of industry contraction, the Brexit squeeze continues to take its toll.
“The summer malaise has endured into the autumn as major projects continue to be hit by delayed starts, refinancing and tweaks in planning. After an injection of infrastructural promises following the change of government, inertia has crept back in and progress is back on ice."