UK construction downturn eases, adding to signs economy holding up
The near-stabilisation in construction activity in August … adds to the mounting evidence that the economy has so far held up pretty well following June’s Brexit vote,” economist Howard Archer from IHS Global Insight said.
Overall construction activity — which accounts for about 6 percent of the economy — nevertheless declined for a third straight month.
“There were still widespread reports that Brexit uncertainty had dampened demand and slowed progress on planned developments, especially in relation to large projects,” said Tim Moore, economist at survey compiler Markit.
Economists will also be concerned by the strength of inflation pressures now facing builders.
Prices paid by construction firms for raw materials shot up at the fastest pace in just over five years, fuelled by the pound’s plunge since the vote to leave the EU.
