Richard Threlfall, KPMG’s head of infrastructure, building and construction, comments on Markit/CIPS UK construction Purchasing Managers’ Index (PMI) which rose in July, despite weaknesses exposed by the underlying data:
“No-one should be fooled by the marginal rise in construction output into thinking the industry is heading back into growth.
“Masked by the overall headline statistics, house-building and civils output has continued to decline. Moreover the biggest issue for businesses in this sector is falling order books, and we have seen another dramatic drop in new work this month. The foundations of this industry are being constantly eroded.
“The pressure on the construction sector remains acute and it is in need of urgent support. The Government’s announcement of guarantees for up to £40bn of projects is welcome, but investment is needed sooner rather than later. Support for house-building is particularly urgently required.”
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