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2 Dec 2015
UK construction PMI falls to a 7-month low on weak expansion of housing activity
FXStreet (Mumbai) - The Markit/CIPS UK Construction Purchasing Managers' Index fell to 55.3 in November from 58.8 in October. Growth in Britain's construction industry dropped to a seven-month low in November, staying below the forecast figure of 58.2 arrived at by economists in a Reuters poll. According to the survey, the weakest expansion in housing activity since mid-2013 caused a sharp decline in construction PMI.
Britain's economic recovery suffered in the third quarter hurt by a 2.2 per cent drop in construction output. The survey report published today does not boost hope for growth in the sector to pick up in the last quarter as well.
Not only did expansion of housing activity decline to its lowest level since June 2013, growth also suffered across commercial construction and civil engineering.
Markit economist Tim Moore is of the opinion that "construction companies have become a little more cautious towards year-end, especially in terms of job hiring”. Employment among construction firms rose at the slowest pace since September 2013. He is however optimistic that “flow of new tenders from public and private sector clients” will boost growth in 2016. Optimism in construction companies remained high in November.
Britain's economic recovery suffered in the third quarter hurt by a 2.2 per cent drop in construction output. The survey report published today does not boost hope for growth in the sector to pick up in the last quarter as well.
Not only did expansion of housing activity decline to its lowest level since June 2013, growth also suffered across commercial construction and civil engineering.
Markit economist Tim Moore is of the opinion that "construction companies have become a little more cautious towards year-end, especially in terms of job hiring”. Employment among construction firms rose at the slowest pace since September 2013. He is however optimistic that “flow of new tenders from public and private sector clients” will boost growth in 2016. Optimism in construction companies remained high in November.