UK construction expanded in May but narrowly missed 51.9 predicted by analysts. It came out 51.2 from 52 recorded in April, its slowest level since June 2013, Markit reported on Thursday. The data show the economy is still struggling and yet to attain optimal production level, largely due to the June 23 referendum.
“Survey respondents noted that the forthcoming EU referendum has disrupted new order flows and the timing of client decision-making in particular,” Markit economist Tim Moore said.
However, the report shows companies hiring surged in May, increasing staff numbers at the fastest pace in five months, and Moore said that was the biggest divergence between staffing trends and orders since the survey began in 1997.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics said “the construction sector is in the doldrums, confirming that the recovery is faring badly under the strain of Brexit risk.”
“But even after a ‘Bremain’ vote, we doubt that the recovery in the construction sector will race away. The sector’s slowdown has reflected more than just Brexit risk. The official data clearly shows that public sector construction is being squeezed, while the revival in housebuilding has run into skilled labour shortages,” he added.
Overall it is an okay result from construction sector.