🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

UK construction sector expands at slowest pace in 13 months - PMI

Published 02/12/2014, 11:35
© Reuters. An industrial crane sits next to an apartment block under construction at Chelsea Wharf in London

LONDON, (Reuters) - British construction activity expanded at the slowest pace in more than a year last month, with order books filling at the slowest pace since June 2013 and

optimism waning, a survey showed on Tuesday.

The Markit/CIPS construction PMI fell to 59.4 in November, its weakest reading since October last year, down from 61.4 in October.

While falling short of economists' expectations for a slight decline to 61.0, the index was comfortably above the 50 threshold for growth, as well as its long-run average of 54.5.

Still, optimism about the year to come fell to its lowest level since October 2013.

"A less favourable overall economic news-flow was cited as the key factor dampening otherwise buoyant demand patterns across the UK construction sector," said Tim Moore, senior economist at Markit.

"However, some construction companies noted that uncertainties ahead of next year's general election had weighed on business confidence and influenced clients' willingness to commit to new projects."

The slowdown in growth was most pronounced in the civil engineering sector, which relies heavily on major government-backed infrastructure projects.

The survey comes a day before British finance minister George Osborne gives his half-yearly budget update.

While he has little room to loosen the purse strings, Osborne will likely unveil more details about spending commitments on infrastructure. On Monday the government fleshed out 15 billion pounds of new road schemes across Britain.

© Reuters. An industrial crane sits next to an apartment block under construction at Chelsea Wharf in London

November's slowdown in civil engineering came despite a surge in government investment spending in the third quarter of 2014, according to official growth data released last week.

(Reporting by Andy Bruce; Editing by Toby Chopra)

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.