Britain’s building sector remained mired in stagnation throughout March as Brexit uncertainty prevented companies from committing to new initiatives, a survey of executives reported on Tuesday.
The IHS Markit building buying managers’ index rose to 49.7 throughout the month, up from 49.5 in February. Something under 50 signifies contraction.
Industrial building, which incorporates retailers, places of work and factories, was the weakest subsector throughout the month. Respondents to the survey attributed the weak point to Brexit uncertainty.
The information are the most recent to point out how turmoil in Westminster over tips on how to go away the EU is spilling over into Britain’s economic system as firms attempt to put together for all eventualities.
Builders reported that that they had constructed up shares of supplies throughout the month to organize for any disruption on the border following Britain’s exit from the EU.
The ballot follows an analogous survey of executives working within the manufacturing industry, revealed on Monday, that discovered factories had been stockpiling each completed items and parts at a record-breaking tempo throughout March.
Joe Hayes, an economist at IHS Markit, stated:
“Fears that the current weak point of the UK building sector will not be only a blip, however a sustained gentle patch, had been additional fuelled by newest knowledge. Amid subdued inflows of latest work, a primary back-to-back decline in output since August 2016 was recorded. Brexit-related uncertainty continued to generate indecisiveness, in the end hitting order e-book volumes.”