UK construction activity slows for second consecutive month
British construction activity has slowed for the second month in a row in March, as businesses in the sector opt to hold back on investment due to ongoing Brexit uncertainty.
The UK construction industry saw activity slow for the second month in a row in March, as businesses continue to hold back on investment due to the ongoing uncertainty over Brexit, according to an industry survey on Tuesday.
The IHS Markit/CIPS Purchasing Managers Index (PMI) edged higher in March to 49.7 from 49.5 but managed to stay below the 50 mark that divides growth from contraction, with this being the first back-to-back fall in output since August 2016 – just months after Britain voted to leave the EU.
Investment in commercial projects drops off
Homebuilding has managed to maintain a steady level of growth, but civil engineering and commercial projects have fallen by the fastest rates seen since September 2017.
‘Brexit-related uncertainty continued to generate indecisiveness, ultimately hitting order book volumes,’ Economist at IHS Markit Joe Hayes said.
Construction output hits weakest level in six years
Official data released last week showed that construction output grew by just 0.3% in 2018, representing the weakest level of activity for the industry in six years and the situation looks unlikely to improve anytime soon.
‘It is unlikely that next month will bring about any positive news given the challenges of a weaker UK economy, volatile pound and intense competition for new orders, as Brexit continues to cast a long shadow over the sector’s future,’ Duncan Brock Group Director at the Chartered Institute of Procurement & Supply said.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
