Brexit ‘holds back’ construction work

Britain’s construction sector suffered its weakest growth for six months in September as the “Brexit blot on the landscape” held back activity, according to a report.

The closely-watched Markit/CIPS UK Construction purchasing managers’ index (PMI) showed a weaker-thanexpected reading of 52.1 in September down from 52.9 in August, with house building losing momentum.

A reading above 50 indicates growth, but economists had expected the reading to remain at 52.9 according to consensus figures from Pantheon Macroeconomics.

The report said the September data indicated the sector continues to be in a “downbeat mood”, with business optimism at its second lowest level since the beginning of 2013.

This comes despite the figures showing the biggest rise in new orders since December 2016.

“The Brexit blot on the landscape was still in evidence as housing activity slowed to a pre-April growth rate and clients hesitated to place orders,” said Duncan Brock, group director at the Chartered Institute of Procurement & Supply (CIPS).

Civil engineering was the worstperforming sector, as activity declined at a faster rate.

A lack of new work to replace completed projects was blamed, after a summer uplift caused in large part by work delayed earlier in the year.

Mr Brock added: “This tale of feast and famine offers little in the way of reassurance and is more about holding on to stable growth than a sprint to the finish.

“The weakest overall activity in six months shows that caution and Brexit concern remain roadblocks to strong growth.”

Howard Archer, chief economic adviser at EY ITEM Club, said the weaker housing market could continue to act as a drag on construction.

Picture: Kris Miller. Construction work under way at the MVV energy plant at Baldovie, Dundee.