ONS construction dip reflects EU uncertainty, says FMB
Federation of Master Builders
The latest fall in output within the construction industry indicates uncertainty amongst businesses and consumers ahead of the EU referendum, the Federation of Master Builders (FMB) has said.
Sarah McMonagle, Head of External Affairs at the FMB, said: “Today’s ONS figures, which show that construction output fell for the second month in a row, could well stem from uncertainty around the outcome of the EU referendum. Construction is an industry that is particularly sensitive to fluctuations in confidence and the forthcoming referendum seems to be having a negative impact on business owners and consumers alike. Much in the same way as the Scottish independence vote weighed on industry confidence back in September 2014, hesitance over investment will likely prevail until we know the result on 23rd June. This isn’t a precipitous drop, but after the prolonged downturn experienced by our sector following the financial crisis, these results are disappointing. We can only hope that this contraction is a blip rather than a prolonged decrease in construction output.”
