03 January, 2019
UK Construction PMI falls to 52.8
IHS Markit/CIPS reported that in December, growth in the UK’s construction sector was at a three-month low standing below expectations, at 52.8.
Economics Associate Director at IHS Markit, Tim Moore, said:
“UK construction firms signalled a slowdown in housing and commercial activity growth during December, which more than offset a strong performance for civil engineering at the end of 2018.”
“Subdued domestic economic conditions and an intense headwind from political uncertainty resulted in the weakest upturn in commercial work for seven months.”
“Strong demand among first-time buyers meant that house building was the fastest growing category of construction output during 2018. However, construction companies indicated a renewed loss of momentum in December. Residential growth remains much softer than the two-and-a-half-year peak achieved last summer.”
On another note, the British Chambers of Commerce reported that with doubt over Brexit reaching sales and recruitment, the UK economy ended 2018 in a “weak holding pattern”.
The report also indicated that the fraction of manufacturers anticipating increasing prices is at its highest level in a year.
Director general of the BCC, Dr Adam Marshall said: “Throughout much of 2018, UK businesses were subjected to a barrage of political noise and drama, so it’s no surprise to see firms report muted domestic demand and investment.”
Mina Andreeva, the European Commission spokeswoman, mentioned that the EU is working towards a structured Brexit, but the contingency plan will still be applied.