Uncertainty over election slows construction activity

General elections affect contruction
General elections affect contruction

 

Construction activity in the UK has seen a sharp fall in activity in April, attributed to the uncertainty surrounding today’s general election which has led to developers being extra cautious over spending decisions. The slowdown was the biggest the industry has witnessed in 22 months according to the UK construction managers’ index, down to 54.2 in April from 57.8 in March.

 

Civil engineering activity also dropped, and whilst residential construction activity did increase, it did so at a very slow pace. A separate survey last week also showed that activity within manufacturing declined in April.

 

Worries over how today’s poll will affect the economy, with the two main parties – Labour and Conservative – unexpected to win an overall majority. This is leading to a prolonged phase of political uncertainty.

 

Markit’s Chief Economist, Chris Williamson, “The construction slowdown may prove temporary, having been at least in part due to uncertainty and construction project delays in the run-up to the most closely fought General Election in a generation.

 

“Encouragingly, companies are expecting business activity to turn higher in coming months, with optimism about the year ahead remaining elevated in April, having climbed to a post-recession high in March.”

 

Some good news is that the construction industry continued to create jobs, albeit at a slower rate than last year’s average. In addition, the labour market hit a record high of 73.4 per cent in recent months which should result in increased wages vital for a recovery.

 

Tina Moore, Senior Economist at Markit, added: “Taken as a whole, the latest survey presents a far more upbeat picture than the curiously weak official construction output data for the first quarter of 2015.”

 

The pay level of subcontractors reportedly climbed at the fastest pace in 18 years.

 

Please rate

Comments 

Name
Email
  Ctrl + Enter

Most Read

 FirstGroup to launch budget London to Edinburgh rail service

FirstGroup to launch budget London to Edinburgh rail service

FirstGroup is to launch a budget direct London-Edinburgh rail service next month, which it hopes will lure air passengers to the train as a cheaper and greener alternative.   The new service, branded Lumo, will have just one single class of travel and the company hopes it will carry more than

One year on: HS2 reaches 20,000 jobs landmark

One year on: HS2 reaches 20,000 jobs landmark

Companies right across the country are now forming part of HS2’s ever-growing supply chain. Contracts have already been awarded to over 2,200 businesses, 97% of which are UK-based.   HS2’s jobs boost is also benefitting those in need, with bespoke initiatives designed to

Record infrastructure pipeline investment to support future workforce

Record infrastructure pipeline investment to support future workforce

This infrastructure pipeline includes the projected future workforce demand based on planned investment in projects and programmes. The Infrastructure and Projects Authority (IPA) estimates that in the four-year period up to 2024/25, over 425,000 individuals will be needed on an average

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.