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Although there’s been a lot of doom and gloom around what Brexit will mean for the UK’s construction sector, not everyone believes it will lead to a significant decline.
In fact, Building recently reported on research from Arcadis, which has predicted that the country could experience what it’s calling a Brexit Bounce in the construction sector. This means growth within the industry could hit five per cent this year, and next.
However, there’s a but (and it’s quite a big one), this growth forecast is dependent on Theresa May convincing MPs to vote for a deal with the EU, and therefore on the UK leaving with a deal in place.
A no-deal scenario would result in a different outcome. And given that this is the direction the country increasingly looks like it’s heading in, it could be a worry for those in the sector.
The Arcadis report also suggested that it’s residential construction and infrastructure projects that are going to see continued growth to 2020. Office and retail construction, on the other hand, isn’t expected to pick up and will likely continue to slow down.
These projections come as the latest IHS Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) recorded a slowdown in the construction industry.
In December, the industry recorded its slowest rate of growth since March 2018, according to the PMI, with many of those surveyed stating that clients are waiting for greater certainty over the outcome of Brexit before they commit to large-scale construction projects and investments.
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