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.