Brexit worries cause dip in construction
Increasing concerns about the EU Referendum later this month have pushed the UK’s construction industry into its weakest performance for almost three years, a key survey has revealed.
The Markit/Cips report showed that incoming new work in the construction sector also dropped last month for the first time since April 2013.
“A number of firms noted reluctance among clients to place orders and commence contracts until after the EU referendum… around one-third of respondents have seen a detrimental impact on their business from uncertainty regarding the forthcoming vote,” the report states.
Tim Moore, senior economist at Markit and author of the survey report, said: “Survey respondents noted that the forthcoming EU referendum has disrupted new order flows and the timing of client decision-making in particular.”
The data came after separate PMI data on Wednesday detailed that the construction industry had only modest growth in May, but remained very nearly in stagnation as Britain’s EU referendum also casts its shadow.
In its recent final poll before the vote, employers lobby group the CBI said 85 per cent of its members were in favour of remaining a part of the EU, 15 per cent backed the Leave campaign and 5 per cent were undecided.
One positive that was outlined in the report was that more than half of those surveyed – 51 per cent – predicted that construction output was due to rise in the coming year, while only 14 per cent expected a fall. There was also a jump in construction staff hiring in May that brought numbers to a four-month high.
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