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Certainty and investment are key to construction sector's revival

02 July 2019
Melanie Williams, head of the real estate sector at global legal business, DWF, comments on the latest IHS MARKIT / CIPS UK Construction PMI figures for June.

Melanie Williams said:

"The latest PMI figures show a construction sector in turmoil with output falling at the steepest rate since the financial crisis, a sharp drop in house building and the availability of new tenders shrinking due to the current political uncertainty in the UK.

"It has been widely said that construction productivity in the UK is running at 2% less than the rest of the economy. This is partly due to political and economic uncertainties, but the reality is that other major factors like a lack of investment competing against rising construction costs and the archaic methods utilised, has really impacted productivity.

"This dip is inevitably feeding into the house building industry, which has seen the sharpest drop in three years, and is a worrying statistic given the various funding streams and interventions by Government to breathe life into it.

"Greater investment is desperately needed to revive the construction industry, but if Government responses have not improved the issue, where else do we look to for the solutions needed?"

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