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- UK’s construction activity growth slows more than expected in August - Markit/CIPS
UK’s construction activity growth slows more than expected in August - Markit/CIPS
The
report from IHS Markit and Chartered Institute of Procurement & Supply
(CIPS) showed Monday that the pace of growth of the companies’ activity in the UK’s
construction sector eased notably in August.
According
to the report, the Markit/CIPS Purchasing Managers' Index (PMI) for the UK’s
construction sector fell to 55.2 in August from an unrevised 58.7 in July. This
was the lowest reading since February, as restricted supply of materials and
transport began to weigh on overall construction activity.
Economists
had forecast the indicator to decrease to 56.9. The 50 mark divides contraction
and expansion.
According
to the report, there were weaker expansions across housebuilding, commercial
work and civil engineering activity as well as in new order growth. Moreover, construction
companies widely noted sustained, and severe, supply chain disruption in
August, which contributed to an accelerated increase in input prices, and one
that was the second-steepest in the history of the survey. In addition, the
rate of job creation softened to a four-month low in the latest survey period.
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