The construction sector activity in the UK economy maintained its pace of expansion in the month of May, a fresh report from Markit Economics showed on Monday.
The final Purchasing Managers’ Index (PMI) came in at 52.5, same as that booked in April and much better than a reading of 52.0 anticipated.
Key Points:
New business growth slips back into decline amid general uncertainty towards outlook.
Input price pressures sharpen on the back of higher fuel and steel costs.
Tim Moore, Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI ®, noted: “The two millstones of uncertainty and weak economic growth gave the sector plenty to worry about this month, and whilst activity still grew, the lowest business confidence in seven months suggests the subdued pipeline of new work is having an effect. With a decline in new orders for a fourth time in five months, it was client hesitation and consumer diffidence towards spending that had construction activity stuttering.”
“Higher prices for fuel, raw material shortages, higher labor costs combined with slow delivery times were further obstacles to growth as firms nervously assessed their workforce for much-needed talent and sub-contractors could name their price.”
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