Political uncertainty and Brexit blamed for decline in UK construction market

Jun 11, 2019

Business leaders across the UK are blaming a combination of political uncertainty and Brexit for the negative figures reported in the latest HIS Market / CIPS UK Construction Total Activity Index.

The report, which suggests business optimism is at its lowest since October 2018, cites concerns that domestic political and economic uncertainty will continue to negatively impact business growth over the coming year. The bleak findings outline that new orders, confidence levels and recruitment are all down.


Tim Moore, associate Director at HIS Market said “May’s data reveals another setback for the UK construction sector, as output and new orders both declined to the greatest extent since the first quarter of 2018”. He continued to explain that the respondents believe political and economic uncertainty has resulted in delays in spending decisions and an increased aversion to risk among clients.

With Brexit trundling on unsolved and an upcoming Tory leadership contest fuellings uncertainty, Duncan Brock of the Chartered Institute of Procurement and Supply suggests “policymakers will have to pull a large rabbit out of the hat, and fast, to improve these difficult conditions and prevent a further entrenchment of gloom and contraction”.

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