A ninth consecutive monthly drop in construction activity at the end of 2019 has been reported, largely driven by the biggest drop in civil engineering activity since 2009.
The IHS Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) fell to 44.4 from 45.3 in November.
The survey was conducted between December 5 and 20, with Prime Minister Boris Johnson winning hislandslide election on December 12.
Despite the comprehensive election result, continuing uncertainty regarding Brexit and the likely impact on industry is still having a significantly negative impact.
IHS Markit has also shown that output in Britain’s manufacturing sector fell at the fastest rate in seven years in December.
It said its construction survey showed activity fell particularly hard in civil engineering and also declined in the housebuilding and commercial sectors.
“Brexit uncertainty and spending delays ahead of the general election were once again the most commonly cited factors highlighted by firms experiencing a drop in construction activity,” Tim Moore, economics associate director at IHS Markit, said.
But there were still some bright sports as the survey’s gauge of business expectations hit a nine-month high in December.
“Survey respondents cited confidence that a more predictable domestic political landscape and clarity on Brexit could deliver a much-needed boost to clients’ willingness to spend in 2020,” he added.
