The construction sector activity in the UK fell deeper into the contraction territory last month, the latest survey report from Markit Economics showed this Tuesday.
The final Purchasing Managers’ Index (PMI) came in at 45.0 in August, down slightly from 45.3 recorded in July and missed the consensus estimates pointing to a reading of 49.5.
Key Points:
New orders fall at fastest pace for over ten years in August.
Construction output drops for the fourth month in a row.
Business optimism sinks to its lowest since December 2008.
Tim Moore, Associate Director at IHS Markit, which compiles the survey, noted:
“Domestic political uncertainty continued to hold back the UK construction sector in August, with survey respondents indicating that delays to spending decisions had contributed to the sharpest fall new work for over 10 years.”
“Construction companies noted that rising risk aversion and tighter budget setting by clients in response to Brexit uncertainty had held back activity, particularly in the commercial sub-sector. Commercial construction activity fell at a steep and accelerated pace during August, which more than offset the softer rates of decline in house building and civil engineering work.”
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