UK Infrastructure Spending Was Slowing Down Ahead of Brexit

The UK’s infrastructure spending boom was already fizzling out before the Brexit vote, according to a survey of civil engineering firms that shows a slowdown in activity and order books leading up to the EU referendum.

In the latest evidence that the referendum has hit business confidence and investment plans, there was also a drop in sentiment and hiring expectations among the companies that build and maintain infrastructure such as roads, railways and the energy supply.

A poll by the Civil Engineering Contractors Association showed that six out of 10 subsectors reported falling workloads in the three months to the end of June, compared with the same period a year earlier. From the 101 companies surveyed, a net balance of 2% said workloads had risen in the latest quarter, a sharp decline from 20% in the previous quarter and the weakest result for three years.

via The Guardian

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza