UK Construction Sector Contraction Eases In November
December 03 2019 - 1:11AM
RTTF2
The UK construction sector continued to contract in November,
albeit at a slower pace, as new work weakened amid domestic
political uncertainty, but the overall pace of decline slowed from
October, survey data showed Tuesday.
The construction Purchasing Managers' Index rose
more-than-expected to 45.3 in November from 44.2 in October, data
from IHS Markit and the Chartered Institute of Procurement &
Supply showed. The expected reading was 44.5.
The score signaled the slowest fall since July. However, a score
below 50 indicates contraction.
"UK construction output fell again in November as Brexit
uncertainty and the forthcoming General Election continued to send
a chill breeze across the sector," Tim Moore, economics associate
director at IHS Markit, said.
Reduced business activity was attributed to a lack of new work
to replace completed contracts. Unusually wet weather also weighed
on output.
All three broad areas of construction work recorded a fall in
output, with civil engineering emerging as the worst performing
category, followed by commercial building.
On the other hand, a much slower decline in housing activity
helped to moderate the overall drop in construction output.
Sales volume decreased for the eighth straight month in
November, which was the longest phase of decline since 2012-13. As
part of cost cutting, construction companies reduced their staffing
numbers.
There was also a solid reduction in purchasing activity and
vendor lead-times lengthened to the smallest extent since September
2010. Overall input cost inflation remained among the lowest seen
since early 2016.
Further, companies remained cautious about their growth
prospects over the course of 2020. Firms were cautious about the
domestic economic outlook and worries that political uncertainty
will continue to hold back client confidence.
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Aug 2024 to Sep 2024
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Sep 2023 to Sep 2024