Moderate action can spark significant growth - BLP Insurance comments on latest PMI
- Date: 01/05/2019
Following the release of today’s Construction PMI figures, Phil Harris, Director at BLP Insurance, comments on the sector:
“After bouncing back into expansion territory (50.5) following a two month period of contraction, it’s time for the construction industry to collectively stop ‘kicking the can’ down the road.
“The industry has been waiting with bated breath for some time for a Brexit resolution to give clarity amid palpable uncertainty. The extension of the Brexit deadline to the end of October, although not providing the assurance the sector seeks, means industry players can no longer afford to sit on their hands.
“We have seen some positive, if tentative, signs of activity in the last few weeks, with a number of blue-chip developers pushing through plans on schemes that had been on the back burner. The fundamentals of the residential market remain strong and further momentum in this space would be seen as a rallying cry to the wider industry, sending out a clear and strong message of progression.
“The Build to Rent (BTR) market is still buoyant and largely unaffected by the political quagmire our country is stuck in. Centred around a reliable business model, secure financing, and a willingness to push the envelope of innovation with its emphasis on offsite construction, BTR is thriving.
“While the spectre of Brexit remains on the horizon, a moderate industry-wide shift away from a regressive ‘wait and see’ mentality can create a more optimistic sentiment, acting as a springboard for future growth.”