The Vinden Partnership says construction industry in limbo as we wait for Brexit details.
The latest Markit/CIPS UK Construction PMI figures reveal that the construction industry appears to moving towards stability.
Construction output in August fell for the third consecutive month and remained below the 50.0 threshold of no change,but the construction PMI reading was up to 49.2 from the previous month’s 85-month low figure of 45.9 .
Housing and commercial sectors both saw much slower contractions than in July – their slowest rate of contraction for three months.
Civil engineering also moved towards stability after a slowdown in July.
Respondents reported Brexit uncertainty was still holding back the construction industry, particularly in terms of house building and commercial activity.
Business confidence increased to its highest level since May but was still amongst the lowest recorded in the last three years.
Speaking to Matt Brown from UK Construction Online, Peter Vinden, Managing Director of The Vinden Partnership – a leading multi-disciplinary consultant company to the built environment said: “This move towards more stability in the construction industry is a step in the right direction but we are a long way from the kind of performance we want to see.
“The uncertainty stemming from Brexit still hangs over the industry. We have heard this week that the Prime Minister is trying to firm up the Brexit strategy and I would encourage them to do this as swiftly as possible.
“Until we get this, the best the construction industry can hope for is stagnation. To see the kind of growth and activity that enables the industry to thrive, we need clear direction from the government. If we are forced to wait until the Autumn Statement, we can expect a downturn in performance for months to come.”
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