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Further fall in activity

Brexit ‘not to blame’ for slip in construction

housebuildingConstruction output fell further in June although there was little evidence that it had anything to do with the EU referendum, the Office for National Statistics says.

There was a  0.9% dip in activity in June compared to May. Between April and June it fell by 0.7% compared with the first three months of the year.

The survey follows the findings of a Markit/CIP puchasing managers index which showed output also fell in July.

The ONS said: “There is very little anecdotal evidence at present to suggest that the referendum has had an impact on output.”

Sterling and British government bonds were barely moved  by the data.

However, analysts expect the Brexit vote to impact on the sector.

Chris Hare, economist at Investec, said: “It’s quite an investment-heavy sector and it’s one of the sectors we would expect to be held back by Brexit-type uncertainty.

“We think that uncertainty intensified rapidly after the Brexit vote so I think the outlook for construction sector is not looking too rosy for upcoming quarters.”

 

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