The latest fall in output within the construction industry could be due to uncertainty surrounding the UK’s relationship with the EU…
Uncertainty surrounding the upcoming vote for the EU has already bled into a number of areas in the construction sector.
The latest figures from the Office for National Statistics revealed a fall of 0.3 per cent in output during February when compared to the month before.
New work and repairs/maintenance saw a decrease, falling by 0.2 and 0.5 per cent, respectively. The Federation of Master Builders (FMB) said the uncertainty of both businesses and consumers ahead of the referendum could be the reason behind the decline.
Sarah McMonagle, head of external affairs at the FMB, said: “Construction is an industry that is particularly sensitive to fluctuations in confidence and the forthcoming referendum seems to be having a negative impact on business owners and consumers alike.
“Much in the same way as the Scottish independence vote weighed on industry confidence back in September 2014, hesitance over investment will likely prevail until we know the result on 23rd June. This isn’t a precipitous drop, but after the prolonged downturn experienced by our sector following the financial crisis, these results are disappointing.
“We can only hope that this contraction is a blip rather than a prolonged decrease in construction output.”
New work saw decreases in all areas aside from private new housing, while repair and maintenance saw falls everywhere apart from public housing.