Civil engineering activity increased marginally, with the rate of growth much softer than December’s 19-month high.<\/p>\n
Commercial work was the weakest performing area of construction output in January as data indicated a decline in work on commercial construction projects for the first time in ten months.<\/p>\n
Anecdotal evidence suggested that Brexit-related anxiety and associated concerns about the domestic economic outlook continued to weigh on client demand.<\/p>\n
Construction firms still remain positive about the outlook for this year with 41% expecting a rise in output while only 16% forecast a fall.<\/p>\n
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<\/a><\/div>\n<\/div>\nLarge-scale civil engineering projects were cited as a key source of optimism, while and Brexit uncertainty was the most commonly cited concern.<\/p>\n
Tim Moore, Economics Associate Director at IHS Markit, which compiles the survey said: \u201cUK construction growth shifted down a gear at the start of 2019, with weaker conditions signalled across all three main categories of activity.<\/p>\n
“Commercial work declined for the first time in ten months as concerns about the domestic economic outlook continued to hold back activity.<\/p>\n
“The latest survey also revealed a loss of momentum for house building and civil engineering, although these areas of the construction sector at least remained on a modest growth path.<\/p>\n
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<\/a><\/div>\n<\/div>\n\u201cStaff recruitment slowed to a crawl in January, with construction firms reporting the softest rate of job creation since July 2016.<\/p>\n
“Delays to client decision-making on new projects in response to Brexit uncertainty was cited as a key source of anxiety at the start of 2019.<\/p>\n
“Difficulties converting opportunities to sales were reflected in a slowdown in total new business growth to its lowest since last May.<\/p>\n
\u201cBusiness expectations for the year ahead slipped to a three-month low and remained subdued in comparison to historic trends in January.<\/p>\n
“Positive sentiment towards the outlook for civil engineering work remains a key factor helping to support business sentiment across the construction sector, according to survey respondents.”<\/p>\n
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