HomeLive CommentsUK PMI construction dropped to 43.3, remained mired in a downturn

UK PMI construction dropped to 43.3, remained mired in a downturn

UK PMI Construction dropped to 43.3 in September, down from 45.0 and missed expectation of 45.0. That’s the second worst reading since April 2009. Markit noted that commercial activity remained the weakest-performing category. There was the second quickest fall in new orders for over a decade. And employment cut to greatest extent since December 2010.

Joe Hayes, Economist at IHS Markit, which compiles the survey:

“The UK construction sector remained mired in a downturn at the end of the third quarter, according to the latest PMI data. Activity is being pulled down at its second-fastest clip for over a decade as firms are buffeted by client hesitancy, heightened Brexit uncertainty and a weak outlook for the UK economy. The commercial sector was a notable casualty in September, with building activity here falling at the fastest rate since April 2009, highlighting the damaging effects of project delays and belt-tightening.

“Low confidence has subsequently caused construction order books to fall substantially. Panellists reported another sharp drop in demand in September that was one of the strongest in the post-crisis era. Forwardlooking indicators suggest that businesses are bracing themselves for a protracted construction slump, with input purchasing and employment both falling at rates unsurpassed since 2010.

“Overall, the performance of the UK economy once again hinges on the service sector showing a marked degree of resilience to offset the weakness seen in construction and manufacturing.”

Full release here.

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