Building Boom

The Markit / CIPS construction purchasing managers’ index last month jumped to its highest level since the Brexit vote, driven by increased housebuilding volumes across the UK. Whilst also rising at its quickest rate for over a year, commercial development was the weakest performing subcategory in the index. Conversely, overall input pricing rose at the slowest rate for seven months, with some respondents citing a tailing off of imported supply chain inflation due to last year’s currency devaluation. This decision over whether to push forward with development projects feels particularly polarising at the moment. The maxim that one should choose to develop when everyone else chooses not to feels appropriate and at a local level Brexit related indecision presents opportunities for those that are willing to push the button.