The construction sector activity in the UK returned to the contraction territory last month, the latest survey report from Markit Economics showed this Tuesday.
The final Purchasing Managers’ Index (PMI) came in at 48.6 in May, down sharply from 50.5 recorded in April and missed the consensus estimates pointing to a reading of 50.5.
Key Points:
Commercial work remains the weakest performing category.
Sharpest drop in workforce numbers since November 2012.
Tim Moore, Associate Director at IHS Markit, which compiles the survey, noted:
“May data reveals another setback for the UK construction sector as output and new orders both declined to the greatest extent since the first quarter of 2018. Survey respondents attributed lower workloads to ongoing political and economic uncertainty, which has led to widespread delays with spending decisions and encouraged risk aversion among clients.”
“Commercial building remained hardest-hit by Brexit uncertainty, with construction firms reporting the steepest fall in this category of activity since September 2017. Civil engineering work also dried up in May and a fourth consecutive monthly fall in activity marked the longest period of decline since the first half of 2013. Construction companies often commented that recent tender opportunities for civil engineering work had been insufficient to replace completed projects.”
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