UK construction PMI fell sharply in June, reaching its lowest level since April 2009

June data IHS Markit/CIPS revealed a sharp loss of momentum for the UK construction sector, with business activity and incoming new work both falling at the fastest pace for just over 10 years. The slide in construction demand was mainly attributed by survey respondents to risk aversion among clients in response to heightened political and economic uncertainty. 

The headline seasonally adjusted UK Construction Total Activity Index posted 43.1 in June, down sharply from 48.6 in May and below the 50.0 no-change mark for the fourth time in the past five months. Moreover, the latest reading signalled the steepest reduction in overall construction output since April 2009. Economists had expected an increase to 49.3.

All three broad categories of activity recorded a decline in output during June. The fall in house building was the largest reported for three years. Commercial work fell for the sixth consecutive month and remained the worst performing area of construction activity. The latest reduction in work on commercial building projects was the steepest since December 2009. Civil engineering activity also declined at a sharp pace in June, with the rate of contraction the fastest since October 2009.