Construction industry hits seven year low
The sector is shaken and recruitment scaled back as Brexit takes its toll.
Construction has slipped into “unknown territory” after the effects of the vote to leave the European Union. It has been revealed that the after-effects of the referendum have forced work to drop to the lowest in seven years.
Housebuilding led the decline as the industry fell to levels not seen since the financial crisis back in 2009.
The industry steadily lost ground as EU worries have meant project delays and consequently less recruitment.
The report’s findings, revealed in a Markit/CIPS purchasing managers’ index survey, stated that June was a hard month. Referendum panic means new business dropped and pushed housebuilding back majorly.
Tim Moore, senior economist at Markit, claims the report uses company feedback to measure the conditions of the market, and so clearly showed how companies are concerned.
He said: “Construction firms are at the sharp end of domestic economic uncertainty and jolts to investor sentiment, so trading conditions were always going to be challenging in the run-up to the EU referendum.”
“Housebuilding was worst affected and very closely followed by commercial work.”
David Noble, chief executive at the Chartered Institute of Procurement and Supply, echoed the feeling of uncertainty.
He added: “Gloom and fragility descended, with the continuing ambiguity and indecision flinging the sector into unknown territory.
“The only glimmer of light is the rate of decline was not as sharp as that experienced during the last recession but this is likely to offer little comfort.”
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