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UK construction 'dropped like a stone' in June 2019 due to Brexit

Report claims UK construction has tumbled to its worst monthly performance since April 2009 amid the global economic crisis

Brexit has impacted UK construction.
Arabian Business
Brexit has impacted UK construction.

Three years after the 2016 Brexit referendum that saw the UK decide to exit the European Union (EU), British construction companies are said to have dropped to their lowest performance in the past decade this June. 

According to a report by the Guardian, the UK's construction industry tumbled to its lowest ever figures in the past decade, with companies including developers, contractors, and consultancies blaming Brexit for their inability to secure new projects.

The report quoted chief UK economist at Pantheon Macroeconomics, Samuel Tombs, as saying: “All three main sub-sectors – housebuilding, commercial, and civil engineering – reported sharp falls in activity."

Tombs noted that the risk of a 'no-deal Brexit' had reduced demand for commercial projects in the UK, which continues to see a drop in civil engineering activities.

Director at the Chartered Institute of Procurement and Supply, Duncan Brock, commented: “Purchasing activity and new orders dropped like a stone in June [2019] as the UK construction sector experienced its worst month for a decade.”

In June 2019, the IHS Markit/Cips construction purchasing managers’ index (PMI) dropped to 43.1 — its lowest reading since April 2009, when the global financial crisis had hit the UK. 

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Construction Week - Issue 751
Oct 13, 2019