UK Construction Rises Despite Brexit

In October the UK construction industry enjoyed a healthy rise in business activity. It was said that this was largely down to a big increase in residential work, a survey has said.

IHS Mark it’s senior economist Tim Moore said the news was “positive”.
But he warned that “respondents noted that Brexit-related uncertainty and concerns about the UK economic outlook had held back investment spending”.

Markets analyst Neil Wilson said: “The market is holding up very well since the [Brexit] vote.
“Residential housing activity was the key driver and this confirms that in terms of the fundamentals of the UK housing market, nothing has really changed.

“The market remains undersupplied and with interest rates at record lows, there is no reason for buyers not to be found.
“Even if prices are pressured and household incomes are constrained by inflation, at the first-time buyer level there is no lack of demand.”

Although the findings in this survey are to be challenged by GDP figures released last week. Which indicated that the construction sector had, in the last three months, contracted 1.4% following the Brexit vote.