UK construction industry sees ongoing decline

UK construction industry sees ongoing decline
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Last month, construction industry of the UK experienced its most severe decline over the course of the last 7 years, Reuters reports, referring to the research published on Tuesday.

According to the document, British economy might face a risk of recession following the referendum on the country’s membership in the EU.

In particular, the Markit/CIPS UK Construction Purchasing Managers' Index (PMI) inched down to 45.9 in July, what is the lowest figure since 2009. There is a drop in the commercial building sector, and civil engineering activity is also affected negatively.

At the same time, clients of construction firms have adopted a “wait and see approach” instead of cancelling the projects. Also, despite the uncertainty, overall demand was stable for housebuilding and infrastructure projects.