LONDON (MNI) – The UK construction sector surprisingly expanded at
the start of the third quarter after a very weak second quarter,
according to Markit/CIPS.
The data, the second of CIPS’ July trilogy, showed the July
construction PMI rose to 50.9 from 48.2 in June, although new orders
posted their second largest fall since January 2010, raising doubts over
the sustainability of the recovery.
“Survey respondents widely cited a lack of new opportunities to
tender and a general weakness in underlying market demand,” the
CIPS/Markit report said.
The July manufacturing PMI plunged to 45.4 from 48.4 in June,
dropping deep into contractionary territory below the 50 breakeven
level, but construction rebounded. The data are likely to have been more
volatile due to the extra national holiday in June for the Jubilee,
making for a choppy monthly pattern.
“July’s survey offered little sign of an imminent rebound in the UK
construction sector, with total activity rising only marginally after
well documented temporary factors had weighed on output last month,” Tim
Moore, Senior Economist at Markit, said.
This week’s CIPS data are coming in too late for the Bank of
England Monetary Policy Committee, which announces its decision at 1100
GMT today and with the CIPS service sector data due out Friday
Normally the MPC gets an advance view of the purchasing managers
data but a Markit spokesperson stated that “the Bank of England did not
get our numbers in advance this month.”
-London newsroom: +44 207 862 7491; email:drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$]