Election uncertainty impacts construction activity

Election uncertainty impacts construction activity

Britain’s construction industry experienced a sharp slowdown in activity last month, with output and new orders growing at their slowest rates since June 2013. The Markit CIPS UK Construction PMI dropped to 54.2 in April, down on March’s 57.8 and below analysts’ projected 57.4. The sector’s rate of hiring also slowed, falling below the long-term average witnessed through 2014. “A number of survey respondents suggested that uncertainty related to the forthcoming general election had contributed to delays in clients’ spending decisions,” said Tim Moore, senior economist at Markit. The survey’s data, however, painted a “brighter picture” than official data which showed that construction had declined 1.6% in the final quarter of 2014, noted Markit’s chief economist Chris Williamson, who added that many construction firms remain optimistic about the outlook for the year ahead, citing data from surveys by RICS and Markit/Savills. Think tank the National Institute of Economic and Social Research predicts growth will rebound through the remainder of this year.