British construction industry makes unexpected post-Brexit return to growth
The construction sector in the UK had fallen for three straight months in the aftermath of Brexit, but made an unexpected return to growth in the Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) for September.
Forecasts had placed the index below the 50 mark, which divides growth from contraction, but the actual figure managed to reach 52.3.
Although well below its average over the last three years of 60, increases in house building and new orders pushed the index figure to a six month high.
Coupled with the recent positive manufacturing PMI, predictions that the UK economy would take a massive post-Brexit hit appear to be not as bad as first thought.
Tim Moore, economist at the index compiler IHS Markit, says: “Construction firms appear reasonably optimistic about the near-term outlook, with confidence linked to the fastest rise in new orders since March. However, the sector remains on a much weaker growth trajectory than seen at the start of 2016.”
Sentiment in Irish construction appears significantly stronger at the moment, with the Ulster Bank Construction PMI for August recording a score of 58.4.
