The construction industry has languished this year due to EU referendum uncertainty, yet figures show that output is on the rise again. Consequently, the second quarter looks far more promising than experts could have imagined earlier this year.
Construction in the Current Economic Climate
Britain’s economic growth was reported to have slowed to 0.4% during the first quarter. A survey by Markit suggested that UK construction fell because of concerns surrounding the June 23 referendum, with last month taking the biggest hit. So how will the decision to remain in or leave the European Union affect the industry going forward? As with many things, it is so hard to make any predictions about Britain’s future. All that we know for sure is that construction companies are currently being cautious about embarking on new building projects.
The Guardian reports that ‘Brexit would lead to [a] shortage of construction staff’ due to parts of the UK construction workforce coming from across Europe. This means that there is potential for the movement of labour in the European market to diminish and subsequently lead to further falls in construction output, which could be detrimental to growth in the sector.
Housing Construction and Prices
With British house prices set to fall for the first time in just under four years, homeowners might be looking to protect their finances and assets by seeking IVA advice. Experts in this field, such as Carrington Dean, can provide guidance and debt solutions to those with any concerns. Find out more about the options available to you by visiting https://www.carringtondean.com/individual-voluntary-arrangement-iva/. Despite the recent stalling in house-price growth, there was apparently a 17% increase in the number of NHBC registrations of new-builds in the UK (reported in April of 2016), plus a 4% rise in house completions.
The Future Looks Bright
Regardless of how insecure the British economy may be right now, the facts and figures suggest that the future of our construction industry isn’t all doom and gloom. The Office for National Statistics confirmed that construction output did rise by 2.5% in April 2016, surpassing the economists’ predictions with the biggest monthly increase since January 2014. The industry may not be growing spectacularly, but it is certainly continuing to move in the right direction.