Brexit doubts hitting sector

The UK construction sector continues to shrink due to Brexit uncertainty and clients refusing to make big orders until future relationships with the EU become clearer, according to new data.

The closely-followed IHS Markit / CIPS (Chartered Institute of Procurement and Supply) Purchase Managers Index for the sector came in at 43.3 for September, down on the 45.0 recorded in August.

Anything below 50 is seen as a contraction, so the latest numbers can be seen as construction suffering a more severe downturn than previously.

IHS Markit economist Joe Hayes said: “Activity is being pulled down at its second-fastest clip for over a decade as firms are buffeted by client hesitancy, heightened Brexit uncertainty and

“Panellists reported another drop in demand”

a weak outlook for the UK economy.

“The commercial sector was a notable casualty in September, with building activity here falling at the fastest rate since April 2009, highlighting the damaging effects of project delays and belttightening.

“Low confidence has subsequently caused construction order books to fall substantially.

“Panellists reported another sharp drop in demand in September that was one of the strongest in the postcrisis era.”

While commercial activity was the worstperforming sector, the survey also revealed falls in civil engineering activity and a fourth successive month of falls in residential buildings.

Jobs were also lost, with the strongest fall in staffing levels in the sector since the end of 2010.