-Sep CIPS PMI Construction Index 49.5 Vs 49.0 in Aug
LONDON (MNI) – The UK construction sector contracted for the second
month in a row in September although the pace of contraction eased,
according to the CIPS/Markit PMI survey.
The headline September CIPS construction index rose to 49.5 from an
unrevised 49.0 in August, having posted a 50.9 reading back in July. The
headline reading was just below analysts’ median forecast for a 49.8
outturn but the survey suggested the construction sector would continue
to struggle in coming months, with new business exceptionally weak.
Markit said the sector’s new business reading in September saw the
second-sharpest fall since April 2009 while business confidence was
running at its lowest levels since mid-2008.
One brighter spot was that construction employment “was relatively
resilient”, with staffing levels actually rising in September.
The survey, however, highlighted the resurgence of inflation
pressures in the UK, with the sector’s inflation rate hitting a
six-month high.
The survey “presents another bleak assessment of business
conditions in the sector. The current sequence of falling new orders is
now the longest seen for three years, reflecting shrinking underlying
demand alongside delays in spending from both public and private sector
sources,” Tim Moore, Senior Economist at Markit, said.
The CIPS data show the construction sector close to flatlining in
the third quarter but the official construction data have been far more
volatile than the CIPS figures and there is no easy read across to the
upcoming offical Q3 numbers.
-London newsroom 0044-207-862-7491; email:drobinson@marketnews.com
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