UK construction industry drops to a seven-month low during November due to the weakest expansion in housing activity since the middle of 2013…
The latest Markit/CIPS UK Construction Purchasing Managers’ Index revealed a decline in activity during November.
According to the figures, the sector experienced a drop from 58.8 in October to 55.3, hitting a new seven-month low.
The sector reportedly suffered as housing activity saw its weakest expansion since mid-2013. The figures also fell well below forecasts of 58.2 in a Reuters poll of economists.
Overall, the economy saw a slowdown between July and September, held back by a 2.2 percent drop in construction output.
Markit economist Tim Moore said: “Overall the latest results suggest that construction companies have become a little more cautious towards year-end, especially in terms of job hiring.”
Additionally, employment in construction firms rose at the slowest pace since September 2013.
“However, a healthy flow of new tenders from public and private sector clients is expected to provide a tailwind to growth heading into 2016,” Moore said.
The PMI did reveal some positivity, with optimism in construction companies remaining high in November.
