Brexit uncertainty hurts UK builders
The ongoing Brexit crisis continues to hurt British builders, with the sector seeing its sharpest decline in output in a decade in June, according to a recent survey.
Brexit continues to put pressure on the UK construction industry, with the sector seeing the sharpest fall in a decade in June, according to the latest IHS Markit/CIPS Purchasing Managers Index (PMI) survey.
In fact, the PMI fell to 43.1, the lowest level since April 2009 when the UK was still reeling from the impact of the global financial crisis.
Construction industry slows over Brexit anxiety
The construction industry has grown increasingly risk averse as a result of ongoing Brexit uncertainty, with companies in the sector worried about near-term demand, leading to a reduction in housing activity for the first time in 17 months.
‘Construction companies reported a continued brake on commercial work from clients opting to postpone spending, with decisions on new projects often pending greater clarity about the path to Brexit,’ Associate Director at IHS Markit Tim Moore said.
‘A continued lack of new work to replace completed projects illustrates the degree of urgency required from policymakers to help restore confidence and support the long-term health of the construction supply chain,’ he added.
British lawmakers must provide Brexit clarity
With the new Brexit deadline of October 31 edging ever closer, the construction industry, which makes up around 6% of the UK economy, has begun to see new orders dry up and larger contracts delayed because of Brexit.
‘A lack of clarity from policymakers has amplified the poor performance in June. Swift decision-making and a break in the political impasse hold the key to pulling the construction sector out of the quicksand,’ Group Director at the Chartered Institute of Procurement & Supply Duncan Brock said.
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