Mark Robinson, Scape Group Chief Executive, commented on today’s Markit / CIPS UK Construction PMI:
“Today’s data perfectly illustrates the uncertainty which surrounded the run up to the EU referendum on 23rd June and the uncertainty which remains as a result of the Brexit vote. It is likely that as a result of the Brexit vote, the uncertainty will only deepen in the short term and the brakes will be put on a number of construction projects until confidence in the economy picks up.
“The true impact of the Brexit decision will only really come to light in a few years’ time – by 2018 we will see the knock-on effect on major projects. It is now more important than ever for all involved stakeholders to support and facilitate public sector project delivery – upgrading essential national infrastructure and delivering quality local services to ensure a sustainable pipeline and to stimulate economic growth for years to come.
“Residential construction has been particularly impacted, which is a blow to much-needed government plans to step up housebuilding, but commercial construction has not escaped unscathed with the downturn evident across the board.
“However, it is not all doom and gloom – employment numbers in the construction sector continued to rise in June indicating companies are optimistic that the current situation is just a blip and in the long run construction activity will pick up once more.
“I count myself among those that believe there is light at the end of the tunnel and the construction industry will continue on its upward trajectory once the uncertainty clears. The government is still determined to push through flagship policies with George Osborne commenting that the HS2 rail project and trans-Pennine rail improvement should continue to be pushed ahead by the next Prime Minister.”