Construction activity has declined for first time in 11 months.
February’s IHS Markit/CIPS UK Construction PMI dropped to 49.5, down from 50.6 in January, and well below market expectations of 50.3, showing a loss of momentum for the UK construction sector.
Residential work was the best performing area of construction activity. However, the combination of declines in both commercial and civil engineering activity has led to the steepest contraction since March 2018.
Tim Moore, Economics Associate Director at IHS Markit siad: “The UK construction sector moved into decline during February as Brexit anxiety intensified and clients opted to delay decision-making on building projects.”
Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply: “The recent fears over the Brexit-related impacts on the sector were realised this month, as barring the weather-related blip in March last year, construction put in its worst performance since September 2017, with the PMI contracting to just below the no-change mark.”