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British construction recorded back-to-back contraction

BRITISH construction recorded its first back-to-back contraction since 2016 last month.

Builders and construction management say that the government’s inability to assure them over faltering Brexit negotiations has led to numerous building projects being suspended and stalled.

IHS Markit’s index of activity for March rose to 49.7 from 49.5 in February, both below the 50 threshold that indicates expansion.

This was the first back-to-back contraction since August 2016, and reflects the decreasing business confidence in the government.

A Unite national construction spokesperson told the Star: “The latest figures underline what workers are finding on the ground.

“Construction projects often rely on confidence and financial certainty. The government’s mishandling of Brexit has seen confidence drain away and work is increasingly being delayed until the financial and political uncertainty of Brexit is resolved.

“The industry outside of London has never fully recovered from the 2008 crash and this has been made worse by the government’s failure to adequately invest regionally in the infrastructure projects that Britain desperately needs.”

Commenting on the economic statistics overall, Labour shadow chancellor John McDonnell said that the Tories have failed to “provide a vision” or offer “meaningful support” to large sectors of the economy.

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