The construction industry has had a difficult year. The last few months have been an unhappy mix of insolvencies, bad weather and Brexit uncertainty. Along with the recent upsurge in so-called ‘Pheonix firms‘, the sector has struggled to achieve sustained momentum. The situation does not look set to improve, with reports revealing a housebuilding slowdown last month.
The latest purchasing managers’ index (PMI) for the construction sector fell to 52.9 in August from 55.8 in July. The reading is well below economist’s predictions, prompting concern for the sector’s prospects.
Builders have struggled to improve output for the last two years, with Brexit negotiations and subdued demand holding back the industry. The bad weather at the start of the year has delayed projects, losing money for construction companies and leaving behind piles of debt and unpaid invoices.
Civil engineering was revealed to be the sector’s worst-performing area, with output falling for the first time since March. Hiring numbers have remained steady throughout the sector, with business owners hoping for a recovery.
Manufacturing also slowed last month, raising fears of a general slowdown in the domestic and export markets within the UK. As the Brexit deadline edges closer, all industries are fearing how the future will look outside of the European Union. While there is still hope for positive trade deals after Brexit, the prolonged nature of negotiations could prove the opposite true.