Construction Industry Faces Worst Month Since Financial Crash
How many steel cladding sheets did your business put up in June? If a good amount, you’re one of few in the construction industry to have a successful month as, on average, June saw the worst construction output for 10 years, according to official figures.
The figures, which were reported by City AM, saw construction activity ‘drop like a stone’ to its lowest level since April 2009, right at the peak of the financial crash. The UK Construction Purchasing Managers’ Index fell sharply from a reading of 48.1 to 43, as demand for housebuilding plummeted during the month – and if that doesn’t mean much to you, any reading under 50 signals a decline in the sector.
These latest woes, alongside many that are affecting both housebuilding, commercial building and civil engineering, has been blamed on continued Brexit uncertainty. New projects have been delayed with the the new October deadline in mind, which has hurt the industry across the supply chain. However, while output has tanked to similar levels, many are quick to point out that this downturn is negligible compared to what happened as a result of the 2008 financial crash.
Duncan Brock, group director at the Chartered Institute of Procurement & Supply, said that construction has become a less hardy industry in recent times: “This abrupt change in the sector’s ability to ride the highs and lows of political uncertainty shows the impact has finally taken its toll.”
Sterling also fell to $1.26 for every pound this week, and house prices continue to see only ‘subdued’ growth, meanwhile the manufacturing