The construction industry performance is a primary indicator for the UK's short term performance.
It is one of the first hit industry sectors to be hit prior to recessions due to investors pulling out of property investments. It is also one of the slowest industry sectors to grow after recessions due to the time lag of design and construction periods.
The news that the industry experienced its weakest performance for seven years in June, pre & post BREXIT is concerning.
To ensure the industry has sustainable growth, 'mega projects' have to be brought forward to balance the industry due to their long design and construction periods.
The government should now look urgently at 'mega' infrastructure projects in the pipeline and take swift action to not only balance the industry but assist in stabilizing the UK economy.
Projects should include; HS2, HS3, multiple airport expansions, Crossrail 2, Bakerloo line extension, Pennine Express, Energy centres, Old Oak Common Redevelopment and large UK holiday destination expansions; to name a few.
These projects will not only assist the short and medium term economic out-put performance; but it will place the UK at the forefront of world class infrastructure for many years to come
The UK's construction industry experienced its weakest performance for seven years last month, according to a closely watched survey. The Markit/CIPS construction purchasing managers' index fell to 46.0 in June, its lowest level since June 2009. It had been 51.2 in May. A figure above 50 indicates expansion - below that, contraction. Most of the data for the survey was collected before the 23 June referendum in which the UK voted to leave the EU. "However, the extent and speed of the downturn in the face of political and economic uncertainty is a clear warning flag for the wider post-Brexit economic outlook," said Tim Moore, senior economist at Markit.