Effect of Brexit – Construction Update
On 5 September 2016 I wrote a blog regarding the effect of Brexit on the UK construction industry. I was heartened by the relative strength of the PMI (Purchasing Managers’ Index) which was recovering nicely after the initial knee-jerk drop, in the immediate aftermath of the vote. I am sure you read it but, if not, have a look now!
An index of 49.2 was good under the circumstances (having been as low as 45.9 in July) and I am very pleased to say we now stand at 52.3 for September. I am sure you will all be aware that a score below 50 represents contraction and above 50 represents growth, hence the UK construction industry is evidently rallying, albeit perhaps temporarily.
So, are we out of the woods?
Definitely not – the construction industry will be affected for years by the vote, the interim uncertainty and the eventual outcome of some very complex, undoubtedly occasionally rather thorny, negotiations for Theresa May and her team. Nevertheless people in the construction industry are a resilient bunch, plus we all need places to live, to work and to shop!