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Construction sector shows signs of improvement

04 February 2020
Kate Kirby, Construction & Infrastructure Partner at global legal business, DWF, comments on the CIPS/IHS Markit construction PMI figures for January 2020. She said:
"Like the manufacturing sector, construction is highly reliant on economic certainty and, as we all know, that was been in short supply throughout 2019. However, the start to 2020 looks a little better. There was some sign of improvement, in that the slowdown in the construction sector eased to its slowest pace in eight months in January but the fact that the two largest contributions to the fall in output came from civil engineering and commercial construction is troubling. 

"The latest construction PMI data is unlikely to provide any real comfort. Though this rebound is a welcome sign, the danger remains the sector could shrink again. The political situation in the UK and its attempt to navigate through trade deals this year could see construction businesses experiencing a see-saw of good and bad news in the coming months."

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