Reaction to IHS Markit/CIPS UK Construction PMI July
The Vinden Partnership says continuing pressure on the sector effects slowdown in growth.
The latest IHS Markit/CIPS UK Construction PMI figures have been released, showing that the construction market is continuing to slowdown.
Output once again fell from 54.8 in June to 51.9 in July, the weakest performance for construction since August 2016. Construction companies point once again to delays in decision making by clients and intense supply chain pressures with prices on materials also continuing to increase.
Confidence that the industry can rebound has taken a hit, with commercial activity seeing the lowest rates and a loss of momentum in house building. Residential activity is still the best performing sector even with the lowest rise in three months.
Good news can be seen in the civil engineering sector, however, with the only upturn in output growth.
Martin Bennett, a Regional Director at The Vinden Partnership – a leading multi-disciplinary consultant company to the built environment, said: “The industry is still lacking in confidence that it can rebound, with uncertainties over the political situation and a weak pound contributing to the effect.
“The continued downturn is reflected with a lack of client confidence and this is the lowest growth in nearly one year.
“The increase in cost of products effects the whole supply chain and concerns over skilled workers still remains.
“Although the residential sector has slowed, government impetus should drive this back up and recent moves in infrastructure development are obviously reflected by the upturn for civil engineering.
“The results are expected following the uncertain political climate and as the government aligns its Brexit strategy.”
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