U.K. Construction Contracts as Brexit Delays Building Projects
(Bloomberg) -- U.K. construction contracted for the first time in almost a year as a lack of clarity about Brexit prompted builders to postpone decisions on projects.
IHS Markit’s index of activity fell to 49.5 last month, from 50.6 in January. That’s the first time it has been below the 50 threshold that indicates expansion since March 2018, when snowy weather disrupted work.
Commercial building and civil engineering led the drop, which will continue, the report said. Residential home building also lost momentum.
“Brexit anxiety intensified and clients opted to delay decision-making on building projects,” said Tim Moore, an analyst at Markit. “The fall in commercial work therefore hints at a further slide in domestic business investment during the first quarter.”
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