Construction industry

Most recent

SIG disappointment

Building supplies
Getty Images

Building supplies firm SIG has blamed economic uncertainty for contributing to tough conditions in the construction industry.

The group has posted a disappointing set of figures with a like-for-like sales fall of 4.7% in the six months to the end of December.

It means adjusted annual pre-tax profit is set to come in at £75m, down from 2017's £79.2m.

"As previously reported, the UK construction environment became increasingly challenging in the second half of 2018," SIG said.

Shares in the FTSE 250-listed firm have fallen 7.63% on the news.

More on construction

IHS Market economist Tim Moore explains the findings of the construction index, which looks at a sector which covers around 7% of GDP.

"Subdued domestic economic conditions and an intense headwind from political uncertainty resulted in the weakest upturn in commercial work for seven months," he says.

He adds: "Levels of optimism remained subdued in relation to those recorded by the survey over much of the past six years, largely reflecting concerns that Brexit uncertainty will continue to encourage delays with decision-making".

Construction at three month low

construction worker
Getty Images

Growth in the UK's construction sector was at a three month low in December according to the index compiled by IHS Markit/CIPS.

This was despite the fastest rise in civil engineering business since May 2017.

The fall in the index to 52.8 from 53.4 a month earlier was largely as expected. A reading above 50 indicates growth.