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UK construction output 'drops like a stone' as Brexit bites - business live UK construction output 'drops like a stone' as Brexit bites - business live
(32 minutes later)
Newsflash: Mark Carney, the governor of the Bank of England, is warning that a global trade war could ‘shipwreck’ the global economy.
Speaking in Bournemouth, Carney explains that trade wars are now the top risk worrying investors, with America threatening Mexico and Europe with new tariffs, on top of its ongoing clash with China.
Protectionism is on the rise, the governor warns the Local Government Association Annual Conference:
Initially motivated by concerns over bilateral trade imbalances, trade measures are now being taken in response to issues ranging from immigration to Intellectual Property protection to control of the technologies underpinning the Fourth Industrial Revolution.
It has even become fashionable for some to speak of a new Cold War. That bears a moment’s reflection for a lot has changed. At the height of the Cold War, US-USSR trade was worth $2 billion a year; today, US-Chinese trade clocks $2 billion a day. More broadly trade in intermediate goods and services has doubled since the fall of the Berlin Wall, and production has become increasingly integrated across borders.
The longer current tensions persist, the greater the risk that protectionism becomes the norm. Once raised, tariffs are usually slow to be lowered. Consider that half a century ago the US imposed tariffs on light trucks due to a dispute over chicken exports to Europe. While the chickens were soon forgotten, the truck tariffs remain in place.
Carney also tells his audience that fears of a no-deal Brexit have also risen in recent weeks.
The governor warns that the Bank would not “automatically” cut interest rates if this happened:
A No Deal outcome would result in an immediate, material reduction in the supply capacity of the UK economy as well as a negative shock to demand. There is little monetary policy can do to offset the former. A major negative supply shock is extremely unusual in advanced economies – the last one was the 1970s oil shock, even if the possibility of the next one is brewing in the Twittersphere
Fiscal policy (government spending) would also need to be deployed to help the economy, he added.
For now, a global trade war and a No Deal Brexit remain growing possibilities not certainties, Carney points out, concluding:
Whether current trade tensions shipwreck the global economy or prove to be a tempest in a teacup will have an important influence on the outlook for growth and inflation in the UK.
However trade tensions evolve and the Brexit process unfolds, UK monetary policy will remain guided by the constancy of the inflation target.
Over in New York, the stock market has opened gingerly as trade war optimism fades.
The S&P 500 index, which closed at a record high last night, has dipped by 3 points or 0.1%.
The Dow Jones industrial average is also in the red, down 50 points or 0.2% at 26,666.
U.S. stocks open slightly lower https://t.co/o4tL2JfgnI pic.twitter.com/DjSBemrL2n
Yesterday stocks rallied on relief that the US and China had agreed to resume trade talks. Today, though, investors are noting that Donald Trump is now threatening tariffs on $4bn of European goods -- including cheese and whisky - in a long-running row over subsidies granted to aeroplane-makers.
Donald Trump threatens new tariffs on $4bn of EU products
Today’s slump in construction activity comes just a day after British factories reported their worst contraction in six years.Today’s slump in construction activity comes just a day after British factories reported their worst contraction in six years.
So is the UK already heading into recession?So is the UK already heading into recession?
Economists professor Costas Milas of Liverpool University thinks it will be close, telling us:Economists professor Costas Milas of Liverpool University thinks it will be close, telling us:
The PMI data for Construction and Manufacturing raise the possibility of the start of a UK recession (i.e. two successive quarters of negative GDP growth). Although the PMI data looks bad, there is some reasonable good news elsewhere.The PMI data for Construction and Manufacturing raise the possibility of the start of a UK recession (i.e. two successive quarters of negative GDP growth). Although the PMI data looks bad, there is some reasonable good news elsewhere.
According to fresh Bank of England data, “divisia money growth” is holding up well at 4% per annum and, at the same time, economic policy uncertainty is no worse (or any better) than what it was in the beginning of the year. “Divisia money growth” weights different forms of money according to their likelihood of being spent (hence, notes and coins have a higher weight than money held in mutual funds, for example). Divisia money also tracks GDP movements quite well.According to fresh Bank of England data, “divisia money growth” is holding up well at 4% per annum and, at the same time, economic policy uncertainty is no worse (or any better) than what it was in the beginning of the year. “Divisia money growth” weights different forms of money according to their likelihood of being spent (hence, notes and coins have a higher weight than money held in mutual funds, for example). Divisia money also tracks GDP movements quite well.
Divisia money and policy uncertainty developments point to GDP growth of 1.44% per annum for 2019Q2 (which is lower than the 1.59% estimate produced by the Bank of England in May) and zero quarter-on-quarter growth for 2019Q2. So, fingers tightly crossed, we might avoid recession....Divisia money and policy uncertainty developments point to GDP growth of 1.44% per annum for 2019Q2 (which is lower than the 1.59% estimate produced by the Bank of England in May) and zero quarter-on-quarter growth for 2019Q2. So, fingers tightly crossed, we might avoid recession....
Professor Milas also reckons the Bank of England could be forced to cut interest rates in the next couple of months, to head off a downturn. More here.Professor Milas also reckons the Bank of England could be forced to cut interest rates in the next couple of months, to head off a downturn. More here.
Costas Milas explains why the probability of no-deal Brexit being on the rise means that the Bank of England may have to proceed with interest rate cuts before 31 October, and the possible consequences of such move. https://t.co/iYYugtcy2sCostas Milas explains why the probability of no-deal Brexit being on the rise means that the Bank of England may have to proceed with interest rate cuts before 31 October, and the possible consequences of such move. https://t.co/iYYugtcy2s
Heads-up: Rating agency Moody’s has now weighed in on Brexit, warning that No Deal would probably drive Britain into a recession.Heads-up: Rating agency Moody’s has now weighed in on Brexit, warning that No Deal would probably drive Britain into a recession.
In its annual credit analysis of the UK, Moody’s has ratcheted up its warnings about leaving the EU without an agreement.In its annual credit analysis of the UK, Moody’s has ratcheted up its warnings about leaving the EU without an agreement.
It warns that:It warns that:
Such an outcome would be very disruptive to current UK-EU trading arrangements and have a material, negative impact on the UK economy and on the economies of certain EU member states,”Such an outcome would be very disruptive to current UK-EU trading arrangements and have a material, negative impact on the UK economy and on the economies of certain EU member states,”
[I imagine that the Republic of Ireland is high on that list of EU states][I imagine that the Republic of Ireland is high on that list of EU states]
Moody’s also warned that the UK could be downgraded, “if the economic impact of Brexit is more severe than it currently expects, such as in a no-deal scenario.”Moody’s also warned that the UK could be downgraded, “if the economic impact of Brexit is more severe than it currently expects, such as in a no-deal scenario.”
Something for Boris Johnson and Jeremy Hunt to ponder, as they continue to insist that they’d take Britain out of the EU without a deal, despite fears it would cost jobs, wipe out businesses, undermine the pound and drive up inflation.Something for Boris Johnson and Jeremy Hunt to ponder, as they continue to insist that they’d take Britain out of the EU without a deal, despite fears it would cost jobs, wipe out businesses, undermine the pound and drive up inflation.
Boris Johnson says no-deal Brexit claims 'wildly over-done' as Hammond says it would cost Treasury £90bn - live newsBoris Johnson says no-deal Brexit claims 'wildly over-done' as Hammond says it would cost Treasury £90bn - live news
Investing legend Warren Buffett has long warned against buying shares when a company floats on the stock market.Investing legend Warren Buffett has long warned against buying shares when a company floats on the stock market.
Buffett’s argument is that IPOs are over-priced, especially when cutting-edge companies come to market during a “hot” period. He also reckons it’s a “mathematical impossibility” that a new IPO can provide the best value, given the imbalance between knowledgable sellers and less- knowledgable buyers.Buffett’s argument is that IPOs are over-priced, especially when cutting-edge companies come to market during a “hot” period. He also reckons it’s a “mathematical impossibility” that a new IPO can provide the best value, given the imbalance between knowledgable sellers and less- knowledgable buyers.
Anyone who took part in Funding Circle’s flotation last October will agree. They paid 440p per share, but have seen their investment slump to just 123p today (down 25% this session alone) following a profits warning from the peer-to-peer business lenderAnyone who took part in Funding Circle’s flotation last October will agree. They paid 440p per share, but have seen their investment slump to just 123p today (down 25% this session alone) following a profits warning from the peer-to-peer business lender
Funding Circle, which lets investors lend directly to small businesses, slashed its revenue growth forecast in half -- and suggested Brexit was to blame.Funding Circle, which lets investors lend directly to small businesses, slashed its revenue growth forecast in half -- and suggested Brexit was to blame.
Samir Desai, Funding Circle’s chief executive and co-founder, said:Samir Desai, Funding Circle’s chief executive and co-founder, said:
“The uncertain economic environment has reduced demand from small businesses and led us to proactively tighten lending criteria.“The uncertain economic environment has reduced demand from small businesses and led us to proactively tighten lending criteria.
Here’s the full story:Here’s the full story:
Peer-to-peer lender Funding Circle warns over revenue amid Brexit fearsPeer-to-peer lender Funding Circle warns over revenue amid Brexit fears
Breaking retail news: One of Mike Ashley’s chief lieutenants has quit Sports Direct after 28 years working for the retail tycoon.Breaking retail news: One of Mike Ashley’s chief lieutenants has quit Sports Direct after 28 years working for the retail tycoon.
The Press Association has the story:The Press Association has the story:
Karen Byers, whom the billionaire called the person who “runs Sports Direct”, was described by insiders as the “glue that holds it all together”.Karen Byers, whom the billionaire called the person who “runs Sports Direct”, was described by insiders as the “glue that holds it all together”.
Her decision to leave with immediate effect was announced to senior store staff and area managers on Monday morning in a conference call, according to sources at the business.Her decision to leave with immediate effect was announced to senior store staff and area managers on Monday morning in a conference call, according to sources at the business.
It looks like the end of a long relationship between the pair.It looks like the end of a long relationship between the pair.
As PA explains:As PA explains:
Mr Ashley hired Ms Byers following a takeover nearly three decades ago, not long after she was said to have sold him a pair of jeans.Mr Ashley hired Ms Byers following a takeover nearly three decades ago, not long after she was said to have sold him a pair of jeans.
The 51-year-old has kept out of the spotlight, although she did face the cameras when Sports Direct invited journalists to visit its Shirebrook warehouse in Derbyshire.The 51-year-old has kept out of the spotlight, although she did face the cameras when Sports Direct invited journalists to visit its Shirebrook warehouse in Derbyshire.
Exclusive: One of Mike Ashley's key lieutenants, Karen Byers, has quit Sports Direct. The retail director leaves after 28 years with immediate effect. Ashley previously said she "ran Sports Direct". Big loss for the company. Story on PA shortly.Exclusive: One of Mike Ashley's key lieutenants, Karen Byers, has quit Sports Direct. The retail director leaves after 28 years with immediate effect. Ashley previously said she "ran Sports Direct". Big loss for the company. Story on PA shortly.
Mike Ashley tells PA "The door will always be open" if she wants to returnMike Ashley tells PA "The door will always be open" if she wants to return
Here’s my colleague Philip Inman on today’s building sector gloom:Here’s my colleague Philip Inman on today’s building sector gloom:
Britain’s construction industry slumped to its worst monthly performance in more than 10 years in June as building firms blamed the Brexit crisis for a lack of new work.Britain’s construction industry slumped to its worst monthly performance in more than 10 years in June as building firms blamed the Brexit crisis for a lack of new work.
Housebuilders joined civil engineering firms and commercial building contractors to warn that a wait-and-see approach to commissioning new projects across the public and private sectors had hit the industry.Housebuilders joined civil engineering firms and commercial building contractors to warn that a wait-and-see approach to commissioning new projects across the public and private sectors had hit the industry.
Most construction firms reported hanging on to their staff to be ready for a conclusion to the Brexit talks, but in the meantime the general slowdown in the economy and the possibility of leaving the EU without a deal was dampening demand.Most construction firms reported hanging on to their staff to be ready for a conclusion to the Brexit talks, but in the meantime the general slowdown in the economy and the possibility of leaving the EU without a deal was dampening demand.
The IHS Markit/Cips construction purchasing managers’ index (PMI) plunged to 43.1, the lowest reading since April 2009 when the country was gripped by the global financial crisis. A PMI figure below 50 shows the sector contracted.The IHS Markit/Cips construction purchasing managers’ index (PMI) plunged to 43.1, the lowest reading since April 2009 when the country was gripped by the global financial crisis. A PMI figure below 50 shows the sector contracted.
More here:More here:
UK construction industry suffers worst month in a decadeUK construction industry suffers worst month in a decade
Britain’s construction woes have even jolted the bond market.Britain’s construction woes have even jolted the bond market.
Investors have driven down the yield, or interest rate, on 10-year UK government bonds to just 0.76%. That’s a three-year low.Investors have driven down the yield, or interest rate, on 10-year UK government bonds to just 0.76%. That’s a three-year low.
Low borrowing costs sounds like a good thing, especially for a country running a budget deficit. Yields move inversely to prices, so investors are paying more to hold UK-backed bonds.Low borrowing costs sounds like a good thing, especially for a country running a budget deficit. Yields move inversely to prices, so investors are paying more to hold UK-backed bonds.
But unfortunately, it suggests the City is pessimistic about UK growth prospects, and seeking the safety of government debt.But unfortunately, it suggests the City is pessimistic about UK growth prospects, and seeking the safety of government debt.
With construction activity falling, it may be harder to get a job at a building firm.With construction activity falling, it may be harder to get a job at a building firm.
Bosses told Markit that there has been a “marginal” drop in workforce numbers, often due to “the non-replacement of voluntary leavers”.Bosses told Markit that there has been a “marginal” drop in workforce numbers, often due to “the non-replacement of voluntary leavers”.
The pound has also dropped against the euro, to €1.116, close to its lowest level since January.The pound has also dropped against the euro, to €1.116, close to its lowest level since January.
Sam Cooper, vice-president of Market Risk Solutions at Silicon Valley Bank, says investors are shunning sterling:Sam Cooper, vice-president of Market Risk Solutions at Silicon Valley Bank, says investors are shunning sterling:
“The extremely disappointing construction PMI reading is further evidence that Brexit concerns are manifesting in economic data.“The extremely disappointing construction PMI reading is further evidence that Brexit concerns are manifesting in economic data.
Sterling’s attraction continues to diminish as weak economic data paired with political uncertainty weigh on the value of the currency”Sterling’s attraction continues to diminish as weak economic data paired with political uncertainty weigh on the value of the currency”
Economist Sam Tombs of Pantheon says Brexit uncertainty is having an increasingly painful impact on UK construction.Economist Sam Tombs of Pantheon says Brexit uncertainty is having an increasingly painful impact on UK construction.
The slump in Markit's construction PMI in June points to a worrying step change in the impact of Brexit uncertainty on the economy. Builders unambiguous that Brexit/political risks are to blame for caution among clients. But don't panic, I'm sure Boris & co have a plan... pic.twitter.com/QKn9miX2RGThe slump in Markit's construction PMI in June points to a worrying step change in the impact of Brexit uncertainty on the economy. Builders unambiguous that Brexit/political risks are to blame for caution among clients. But don't panic, I'm sure Boris & co have a plan... pic.twitter.com/QKn9miX2RG
Only the “pathologically optimistic” observer could expect Britain’s construction sector to recover anytime soon, says Blane Perrotton, managing director of property consultancy and surveyors Naismiths.Only the “pathologically optimistic” observer could expect Britain’s construction sector to recover anytime soon, says Blane Perrotton, managing director of property consultancy and surveyors Naismiths.
He says:He says:
“This is less of a slide than a sledgehammer. After licking its wounds from a lean May, the construction industry has once again been ambushed by plummeting investor demand.“This is less of a slide than a sledgehammer. After licking its wounds from a lean May, the construction industry has once again been ambushed by plummeting investor demand.
“In an industry that still bears the scars of the crash a decade ago, the news that output is once again falling as fast as it did in the dark days of 2009 will send a chill down many builders’ spines.“In an industry that still bears the scars of the crash a decade ago, the news that output is once again falling as fast as it did in the dark days of 2009 will send a chill down many builders’ spines.
“Apart from a brief flurry of stockpiling in advance of March 29th – what should have been Brexit Day – the first half of 2019 has been grim across much of the construction sector.“Apart from a brief flurry of stockpiling in advance of March 29th – what should have been Brexit Day – the first half of 2019 has been grim across much of the construction sector.
Simon Harvey of currency exchange firm Monex Europe agree that June’s construction PMI is much worse than feared.Simon Harvey of currency exchange firm Monex Europe agree that June’s construction PMI is much worse than feared.
Massive miss in UK construction PMI which doubles down on yesterday's dismal manufacturing reading. UK Construction industry suffered its worst month in 10-years with LT investment being postponed due to Brexit, and a lot of the backlog worked through.Massive miss in UK construction PMI which doubles down on yesterday's dismal manufacturing reading. UK Construction industry suffered its worst month in 10-years with LT investment being postponed due to Brexit, and a lot of the backlog worked through.
New orders fell by the most in 10 years, with slowing external demand also a concern. Housing activity falls to show the lowest reading since June 2016, reversing the expansionary trend.New orders fell by the most in 10 years, with slowing external demand also a concern. Housing activity falls to show the lowest reading since June 2016, reversing the expansionary trend.
Today’s grim construction PMI report has hurt the pound, sending sterling to a two-week low of $1.261 against the US dollar.Today’s grim construction PMI report has hurt the pound, sending sterling to a two-week low of $1.261 against the US dollar.
Michael Hewson of CMC Markets says the City is alarmed to see UK construction falling at the fastest rate since April 2009 -- during the last recession.Michael Hewson of CMC Markets says the City is alarmed to see UK construction falling at the fastest rate since April 2009 -- during the last recession.
He explains:He explains:
On the currencies front the pound is amongst the worst performers after a shocking miss in the latest construction PMI for June saw economic activity slide to 43.1, its weakest level since April 2009. There is no sugar-coating these numbers, they are awful. Far from seeing an improvement to 49.2, from 48.6, activity has collapsed with the home building sub component turning negative for the first time in 17 months.On the currencies front the pound is amongst the worst performers after a shocking miss in the latest construction PMI for June saw economic activity slide to 43.1, its weakest level since April 2009. There is no sugar-coating these numbers, they are awful. Far from seeing an improvement to 49.2, from 48.6, activity has collapsed with the home building sub component turning negative for the first time in 17 months.
It would appear that the recent stalling of house prices is seeing a slowdown in this particular sector. New orders also fell sharply as the Brexit limbo puts companies off any imminent plans to make long term investments. It also calls into question the Bank of England thinking that a rate rise is more likely than a rate cut.It would appear that the recent stalling of house prices is seeing a slowdown in this particular sector. New orders also fell sharply as the Brexit limbo puts companies off any imminent plans to make long term investments. It also calls into question the Bank of England thinking that a rate rise is more likely than a rate cut.
The news that Britain’s construction sector just suffered its worst month in a decade has alarmed commentators and investors.The news that Britain’s construction sector just suffered its worst month in a decade has alarmed commentators and investors.
Here’s some snap reaction:Here’s some snap reaction:
Pain of Brexit indecision felt across house building, commercial and civil engineering reports @IHSMarkitPMI June construction PMI at 43.1 down sharply from 48.6 previous monthPain of Brexit indecision felt across house building, commercial and civil engineering reports @IHSMarkitPMI June construction PMI at 43.1 down sharply from 48.6 previous month
Seeing as big construction projects often overrun in terms of cost and time, is it possible the dreadful UK construction PMI report for June was as an overshoot of the 29 March UK departure date? #BrexitSeeing as big construction projects often overrun in terms of cost and time, is it possible the dreadful UK construction PMI report for June was as an overshoot of the 29 March UK departure date? #Brexit
Wretched UK Construction PMI - weakest since 2009, hammered by Brexit uncertainty"The pain of Brexit indecision was felt across all three sub-sectors but the previously resilient housing sector suffered the fastest drop in three years which is frankly worrying news." -@cipsnews pic.twitter.com/zAtHnI0GBgWretched UK Construction PMI - weakest since 2009, hammered by Brexit uncertainty"The pain of Brexit indecision was felt across all three sub-sectors but the previously resilient housing sector suffered the fastest drop in three years which is frankly worrying news." -@cipsnews pic.twitter.com/zAtHnI0GBg
Construction PMI at its lowest since April '09, note: a reading below fifty suggests the construction sector is in contraction. Makes that 300,000 news homes a year target a tad tricky pic.twitter.com/z93CeP59gHConstruction PMI at its lowest since April '09, note: a reading below fifty suggests the construction sector is in contraction. Makes that 300,000 news homes a year target a tad tricky pic.twitter.com/z93CeP59gH
Today’s PMI report shows clearly that UK construction activity has taken a nasty tumble in the last few months:Today’s PMI report shows clearly that UK construction activity has taken a nasty tumble in the last few months:
Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, says building firms are trapped in “quicksand” by political uncertainty:Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, says building firms are trapped in “quicksand” by political uncertainty:
“Purchasing activity and new orders dropped like a stone in June as the UK construction sector experienced its worst month for a decade.“Purchasing activity and new orders dropped like a stone in June as the UK construction sector experienced its worst month for a decade.
“This abrupt change in the sector’s ability to ride the highs and lows of political uncertainty shows the impact has finally taken its toll as new orders dried up and larger contracts were delayed again. The pain of Brexit indecision was felt across all three sub-sectors but the previously resilient housing sector suffered the fastest drop in three years which is frankly worrying news“This abrupt change in the sector’s ability to ride the highs and lows of political uncertainty shows the impact has finally taken its toll as new orders dried up and larger contracts were delayed again. The pain of Brexit indecision was felt across all three sub-sectors but the previously resilient housing sector suffered the fastest drop in three years which is frankly worrying news
Tim Moore, associate director at IHS Markit, says building companies are suffering from the lack of clarity over Britain’s future:Tim Moore, associate director at IHS Markit, says building companies are suffering from the lack of clarity over Britain’s future:
Delays to new projects in response to deepening political and economic uncertainty were the main reasons cited by construction companies for the fastest drop in total construction output since April 2009. While the scale of the downturn is in no way comparable that seen during the global financial crisis, the abrupt loss of momentum in 2019 has been the worst experienced across the sector for a decade.Delays to new projects in response to deepening political and economic uncertainty were the main reasons cited by construction companies for the fastest drop in total construction output since April 2009. While the scale of the downturn is in no way comparable that seen during the global financial crisis, the abrupt loss of momentum in 2019 has been the worst experienced across the sector for a decade.
“Greater risk aversion has now spread to the residential building sub-sector, as concerns about the near-term demand outlook contributed to a reduction in housing activity for the first time in 17 months.“Greater risk aversion has now spread to the residential building sub-sector, as concerns about the near-term demand outlook contributed to a reduction in housing activity for the first time in 17 months.
“Construction companies reported a continued brake on commercial work from clients opting to postpone spending, with decisions on new projects often pending greater clarity about the path to Brexit. Latest data meanwhile indicated another sharp fall in civil engineering, which also reflected delayed projects and longer wait times for contract awards.“Construction companies reported a continued brake on commercial work from clients opting to postpone spending, with decisions on new projects often pending greater clarity about the path to Brexit. Latest data meanwhile indicated another sharp fall in civil engineering, which also reflected delayed projects and longer wait times for contract awards.
UK builders also reported that new orders dropped at the fastest rate in over 10 years, while demand for construction products and materials fell at the sharpest pace since the start of 2010.UK builders also reported that new orders dropped at the fastest rate in over 10 years, while demand for construction products and materials fell at the sharpest pace since the start of 2010.
Britain’s construction sector suffered as “sharp drop in momentum” last month, says data firm Markit.Britain’s construction sector suffered as “sharp drop in momentum” last month, says data firm Markit.
In a very worrying healthcheck on the construction sector, Markit has found that business activity and incoming new work both fell at the fastest pace for just over 10 years.In a very worrying healthcheck on the construction sector, Markit has found that business activity and incoming new work both fell at the fastest pace for just over 10 years.
Housebuilding, commercial construction and big civil engineering work all contracted during the month -- a bad sign for the whole construction sector.Housebuilding, commercial construction and big civil engineering work all contracted during the month -- a bad sign for the whole construction sector.
Builders across the country blamed “risk aversion among clients in response to heightened political and economic uncertainty.”Builders across the country blamed “risk aversion among clients in response to heightened political and economic uncertainty.”
That suggests people are simply unwilling to take risks while they don’t know how the Brexit crisis will be resolved.That suggests people are simply unwilling to take risks while they don’t know how the Brexit crisis will be resolved.
This has dragged the IHS Markit/CIPS UK Construction Total Activity Index down to just 43.1 in June, down sharply from 48.6 in May. Any reading below 50 shows a contraction, and this shows the steepest reduction in overall construction output since April 2009.This has dragged the IHS Markit/CIPS UK Construction Total Activity Index down to just 43.1 in June, down sharply from 48.6 in May. Any reading below 50 shows a contraction, and this shows the steepest reduction in overall construction output since April 2009.
The fall in house building was the largest reported for three years, which construction companies linked to weaker demand conditions and concerns about the outlook for residential sales.The fall in house building was the largest reported for three years, which construction companies linked to weaker demand conditions and concerns about the outlook for residential sales.
NEWSFLASH: Construction output in the UK has fallen at the steepest rate since April 2009!NEWSFLASH: Construction output in the UK has fallen at the steepest rate since April 2009!
That’s according to data firm Markit, and its latest survey of purchasing managers. More to follow.....That’s according to data firm Markit, and its latest survey of purchasing managers. More to follow.....