🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

UK construction growth slips to nine-month low in January - PMI

Published 02/02/2016, 09:43
© Reuters. Offices are seen at dusk as St. Paul's Cathedral and construction cranes are seen on the skyline in the City of London, Britain

LONDON (Reuters) - Growth in Britain's construction industry was its weakest in nine months in January after a short-lived recovery in December, a survey published on Tuesday showed.

The Markit/CIPS UK Construction Purchasing Managers' Index weakened to 55.0 from 57.8, below the median forecast of 57.5 in a Reuters poll of economists.

Order books grew at the weakest pace in four months and construction firms took on staff at the slowest rate since September 2013.

Housebuilding and commercial property work were the biggest drivers behind the slowdown in January, according to survey compiler Markit.

"UK construction firms struggled for momentum at the start of this year, with heightened economic uncertainty acting as a brake on new orders and contributing to one of the weakest rises in output levels since the summer of 2013," Markit economist Tim Moore said.

The PMI contrasted with a similar gauge of Britain's manufacturing sector published on Monday which showed the factory sector had a stronger-than expected start to 2016, raising hope that Britain would not be hit too hard by a slowdown in the global economy.

Analysts look at the surveys for the early signs they give about the broader economy. However, the PMIs for the construction sector have been at odds with data used in official growth figures in recent months.

Optimism among construction companies waned to its lowest level since December 2014, the PMI showed.

© Reuters. Offices are seen at dusk as St. Paul's Cathedral and construction cranes are seen on the skyline in the City of London, Britain

"Taken together with the slowdown in new order growth, the latest survey suggests that construction companies are braced for a relatively subdued first quarter," Moore said.

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.