Investing.com - Activity in the UK construction sector held steady last month, according to a closely watched business survey released on Monday.
Research firm IHS Markit said its construction purchasing managers’ index remained unchanged at 52.5 in May, compared to forecasts for a reading of 52.0.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
IHS Markit highlighted that activity growth remained subdued in May as new business growth slipped back into decline amid general uncertainty towards outlook.
The research firm also noted that input price pressures sharpened on the back of higher fuel and steel costs.
IHS Markit economist Sam Teague indicated that, though the rebound was “somewhat underwhelming”, it still represented a recovery for the second quarter after the contraction seen at the beginning of the year, although he warned that it may be short-lived.
“Inflows of new business slipped back into decline, signaling the resumption of the downward trend in demand seen during the opening quarter,” he said.
“Companies frequently noted that Brexit uncertainty and fragile business confidence led clients to delay building decisions in May,” Teague added.
“With new order books deteriorating and cost pressures picking back up, it’s not surprising to see construction firms taking a dimmer view of prospects and pulling-back on hiring, all of which makes for a shaky-looking outlook,” Teague concluded.