UK construction sector slumps to decade low
The IHS Markit CIPS UK construction index was 41.3, a sharp decline from May’s 48.6. Analysts had been looking for a rise, to around 49.2.
It was also the fourth time in the last five months that the index has come in below 50.0. A reading above 50 indicates growth, while a reading below signals contraction.
All three construction categories recorded falls in output. The previously strong housebuilding sector reported its largest fall for three years, while commercial work’s decline was the steepest since December 2009. Civil engineering fell at the fastest rate since October 2009.
Total new work decreased for the third month in a row, with the most recent contraction the sharpest rate of decline since April 2009. ■