Brexit uncertainty weighted on UK Construction
February 04, 2019 @ 18:04 UTC
The uncertainty surrounding Brexit and the possibility of exit without a deal is resulting in a decline in British building activity. The new PMI data release has indicated a slow down in building activity to its lowest level since March last year. January data, published on Monday morning showed a decrease in the index from 52.8 to 50.6 points.
This was caused amongst other things by an unexpected drop in the pound against the dollar as market participants focus on the inevitability of Brexit in a few weeks time. This sort of uncertainty plays a big role where big investment decisions are concerned, including building and purchasing of real estate. All eyes are still on London as Theresa May is still in negotiations with the EU, which will hopefully end in an agreement soon.