VThe Uk Construction Industry is continuing its bounce-back after the controversial Brexit decision. The economy has started what many believe will be a long road to recovery. The FTSE100 and UK stock exchanges are continuing to rise however the currency is still hard-hit and it seems that there could still be some punches left to be received. The purchasing manager’s survey increased from low 49 to low 52 in a three-point swing for the month of September. The next PMI result was expected to be a decrease back to below 50 indicating a slight recession in the industry however it is currently projected to be considerable better suggesting that the worst is over.
Prior to the Brexit vote the PMI had fallen due to the uncertainty surrounding the closeness of the polls. However, the PMI seems to be increasing due to the low cost of the pound which is actually helping the construction industry. It is believed that manufacturers are having more inquiries for overseas work and exports as the exchange rate makes British services and produce considerable less expensive than previous times. The currency is at a 31-year low and this is surely a sign of the times signalling that the UK will be in for a hard Brexit as opposed to the soft Brexit people were hoping.
The increase in housing activity also considerably aided the economy as more companies pressed on with plans to build houses and other construction projects. The activity is a welcome boost for an economy that is struggling to survive the aftermath of Brexit. The currency is also feared to take a bigger plunge later this week as experts suggest that the decision on whether Britain will have a hard or a soft Brexit rests with the democracy of parliament and not with the Government. This increased uncertainty is speculated to further damage what is already a wrecked Sterling.