Housing activity ‘solid’ despite Brexit

Despite continued residential activity, the rate of growth slowed slightly when compared with the previous month.  

The Markit construction Purchasing Manager's Index (PMI) increased from 52.3 to 52.6 in October as a result of housebuilding activity. The months leading up to the EU referendum in June recorded low readings, as companies opted for caution. In the months after the vote, input costs rose, but this is suspected to be due to the weaker pound sterling.  

Housing activity remains the driving force behind the growth in the construction sector in October.  

Tim Moore, senior economist at IHS Markit and author of the Markit/CIPS Construction PMI, said: 'The UK construction sector has started the fourth quarter in a positive fashion, with the latest survey data revealing a moderate rebound from the downturn seen during the summer.'

He continued: 'Construction growth was dependent on a solid recovery in residential work, as civil engineering and commercial building struggled for momentum in October.'

Investment spending was slightly subdued due to the economic and political uncertainty surrounding Brexit and concerns about the UK's economic outlook during and after Brexit negotiations.  

For more information on this story, click on the link below:  
The Costruction Index