UK construction growth slowed to its weakest levels in a year
London — UK construction growth unexpectedly slowed to the weakest in a year in August, as the industry was hit by reduced business investment and heightened economic uncertainty, according to IHS Markit. The purchasing managers index (PMI) fell to 51.1, the lowest since August 2016, and down from 51.9 in July. That’s below the 52 forecast by economists in a Bloomberg survey, although it remains above the 50 level dividing expansion from contraction. New business volumes fell for the second consecutive month, according to Markit, with survey respondents highlighting a lack of fresh orders to replace completed projects. Companies also exercised greater caution in their approach to hiring, with staff numbers growing at the slowest pace since July 2016. Reduced levels of commercial work were also a major reason for the continued slowdown, offsetting more robust growth in residential building. Meanwhile, cost pressures were the weakest in almost a year, as the impact of the falling poun...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.