Mark Robinson, Scape Group Chief Executive, comments on today’s Markit/CIPS Construction PMI:
“This latest barometer of the health of the construction industry brings less than welcome news today, showing that output has not increased since February’s overall ten-month low. The government has outlined progressive plans for UK infrastructure and the Northern Powerhouse and it is concerning at the current time that the construction industry is being subdued by uncertainty – most likely driven by a combination of the upcoming EU referendum vote and UK local elections in May. The housing sector performed the weakest of all in March and given the ongoing house price crisis, and the desperate need for increased property supply, we need to see a reversal of this trend. Given the infrastructure projects that have been committed to, it is disappointing that there is not the housing supply to accompany this, which raises the question of whether people will truly see the benefit of improved road and transportation networks.”
“However, there are a number of positives to take from today’s report, as the majority of respondents expect a rise in activity in their business units in the next 12 months and they are also generally supportive of the economic backdrop. These sparks of positivity should lead to a firing up of the industry over the next quarter, in order to deliver much needed infrastructure and housing right across the UK.”