U.K. construction sector contracted at the fastest pace in six months in December, driven mainly by a steep reduction in housing activity, data from a survey by Markit Economics and the Chartered Institute of Purchasing & Supply (CIPS) showed Thursday.
The seasonally adjusted purchasing managers’ index (PMI) for the construction sector dropped to 48.7 in December from 49.3 in November, hitting the lowest level since June. Economists had forecast the index to rise to 49.5. The index has now posted below the no-change 50 mark in four of the past five months.
Among the three broad sub-categories, activity in the housing sector declined at the fastest pace in two years. Residential construction output dropped for the seventh straight month.
At the same time, commercial construction activity decreased further in December, extending the current period of reduction to five months. Meanwhile, civil engineering defied the overall trend by posting another moderate expansion.
New business received by British construction firms dropped for the seventh month in a row, and at the the fastest pace since April 2009. Employment levels in the sector dropped for the third month running, owing mainly to a lack of new work to replace completed projects.
by RTT Staff Writer
For comments and feedback: editorial@rttnews.comEconomic News