Construction holding its breath post-Brexit

The UK construction industry showed modest indicators of recovery in August — by contracting less than in July, a survey has suggested.

The Markit/CIPS purchasing managers’ index (PMI) for the sector rose to 49.2 in August, but stayed below the 50 level, which indicates contraction.

The index was up from July’s figures of 45.9 — a seven year low.

But uncertainty over Brexit is still weighing heavily.

Tim Moore, senior economist at Markit, said: “Construction firms cited a nascent recovery in client confidence since the EU referendum result and a relatively steady flow of invitations to tender in August.

“However, the latest survey indicates only a partial move towards stabilisation, rather than a return to business as usual across the construction sector.

“There were still widespread reports that Brexit uncertainty had dampened demand and slowed progress on planned developments, especially in relation to large projects.”