1. Read more...

Tim Moore, the associate director at IHS Market, said that: “greater hesitancy among clients led to a decline in overall new work for the eighth consecutive month during November.”

“Construction companies reported a particularly sharp fall in demand for commercial projects amid a greater squeeze from domestic political uncertainty and delayed investment decisions,” continued Moore.

Overall, the report conveyed signs of reduced activity due to the lack of new work.

Gareth Belsham, the director of Naismiths, a property consultancy and surveyor, commented: “Investor demand is brittle, new orders continue to decline at an alarming rate and many builders don’t have a sufficient pipeline of work to replace completed projects.”

The UK PMI construction index rose to 45.3 in November, compared to the 44.2 in October. Still, this stands below the 50 mark, conveying the lack of activity.

Duncan Brock, the group director at the Chartered Institute of Procurement and Supply, explained that: “Brexit uncertainty, an impeding general election and wet weather all combined to keep the construction sector firmly in its contraction hole last month with purchasing, outut and new orders falling again.”

Out of all performing sectors, civil engineering saw the worst fall back. However, the slower decline in housing activity aided in an overall drop across the UK construction output. The marginal growth in the housing PMI index for November and the previous month “comes as a relief”, according to Prohad Khan, a property economist at consultancy Capital Economics.

Compariqo offers bespoke re-financing and insurance solutions to the property sector. Contact one of our advisors today.