Britain's construction industry reported the first decline in almost a year, as Brexit uncertainty and a sluggish housing market delayed new building projects, according to Reuters data.
The IHS Markit/CIPS Purchasing Managers’ Index (PMI) fell to 49.5 in February from January’s reading of 50.6, the first time the index has been below the 50-mark that separates growth from contraction.
The current geopolitical situation for the UK is still difficult. Britain remains at risk of leaving the European Union on March 29 with no transitional arrangements, though last week Prime Minister Theresa May said lawmakers would be able to vote to delay Brexit for a short period. In fact, Brexit is scheduled for March 29 this year.
Presently, construction projects such as new homes and office space were also being put on hold as Brexit uncertainty slowed commercial decision-making and the housing market weakened. According to the latest data, in 2018, the construction showed the minimum growth rate since 2012 – only 0.7%. Construction makes up only 6 percent of Britain’s economy, but its volatility often means it has a significant effect on the quarterly growth rate of the whole economy.
