Published By : 02 Dec 2015 | Published By : QYRESEARCH
Growth in the construction industry in the United Kingdom fell to a seven month low last month, adversely impacted by the mildest expansion in housing activity since the middle of 2013, based on findings of a survey that indicates the industry will continue to weaken the economy.
The UK Construction Purchasing Managers’ Index by Markit/CIPS dropped from 58.8 in October to 55.3 last month, which was much below the weakest forecast by a poll of Reuters’ economists who predicted a reading of 58.2 in November.
The economic recovery in Britain slumped from July to September, holding back a drop of 2.2 per cent in the construction output. The survey conducted on Wednesday did not show positive signs of an improvement in the construction industry in the last quarter of 2015.
The expansion of housing activity dropped to its weakest level since June of 2013 and growth weakened across civil engineering as well as commercial construction.
Tim Moore, an economist with Markit, said that the most recent results indicate that overall, construction companies have been rather cautious towards the end of the year, most particularly when it comes to job hiring.
The rate of employment in construction companies increased at the weakest pace since September of 2013.
However, Moore said that a healthy flow of new tenders from clients in the private as well as public sector is anticipated to offer some support to the overall growth in the nation’s construction industry as it heads into the new year.
The Purchasing Managers’ Index showed that even though the level of optimism within the construction sector faded in November compared to the previous month, it was still at a high.
A similar survey that studies service companies in Britain is anticipated to show that the service sector presented a healthy growth rate in November.