Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UK building firms see growth slow in December - PMI

Published 03/01/2018, 09:43
© Reuters. A man walks accross Primrose Hill as dawn breaks behind construction cranes in the City of London

By William Schomberg

LONDON (Reuters) - Growth in Britain's construction sector slowed last month for the first time since September, as weaker growth in house-building combined with a fall in commercial building and stagnating infrastructure work, a survey showed on Wednesday.

The IHS Markit/CIPS UK Construction PMI slipped to 52.2 after hitting a five-month high of 53.1 in November.

It was just below a median forecast of 52.5 in a Reuters poll of economists.

Construction comprises around 6 percent of British economic output, and official figures showed the sector grew by 4.8 percent in the 12 months to the end of September.

A PMI for the far larger services sector is due on Thursday and will be watched more closely by investors as a gauge of whether the British economy lost pace at the end of 2017, when some surveys suggested the prospect of Brexit weighed on growth.

New orders for construction projects grew at the fastest rate since May 2017 and purchases of materials rose by the most in two years, pointing to further growth in the immediate future, IHS Markit said.

However, the balance of companies expecting a rise in output over the next 12 months remained among the weakest since 2013, mainly due to worries about the outlook for Britain's economy as the country prepares to leave the European Union in March 2019.

The residential sector grew for a 16th straight month while the moderate fall in commercial building extended a run of weakness seen since July.

British finance minister Philip Hammond announced a series of measures in November to boost house-building which has lagged demand for years, pushing up house prices sharply.

Costs faced by construction companies remained strong as prices rose for bricks, blocks, insulation and other materials.

© Reuters. A man walks accross Primrose Hill as dawn breaks behind construction cranes in the City of London

But the rate of inflation was below a peak seen in February.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.