UK PMI construction dropped to 52.1 in September, down fro 52.9 and missed expectation of 52.6. The key points are “all three sub-sectors record a loss of momentum”, “solid increases in new work and employment”, but “business optimism at second-lowest level since February 2013”.
Tim Moore, Associate Director at IHS Markit and author of the IHS Markit/CIPS Construction PMI®:
“UK construction firms experienced softer output growth during September, with house building, commercial and civil engineering all losing momentum. A lack of new work to replace completed projects meant that civil engineering saw an overall decline in activity for the second month running and remained the main laggard.
“There were mixed signals in terms of the near-term outlook. New order books strengthened to the greatest extent since December 2016, which indicates that construction workloads remain on an upward trajectory. Rising demand and tight labour market conditions led to robust job creation, with survey respondents commenting on a larger-than-usual uptake of apprentices in September.
“However, latest data showed that overall confidence about the year-ahead business outlook was among the lowest seen since the start of 2013. Construction companies continued to note that political uncertainty acted a key drag on decision-making, with Brexit worries encouraging a wait-and-see approach to spending among clients. The main areas reported as likely to see a boost in the coming year were construction work related to large-scale energy and transport projects.”
