- UK Construction PMI Expands at Three Month Low
Global uncertainty continued to weigh on UK construction sector in August, IHS Markit said on Tuesday.
The Construction Purchasing Managers’ Index stood at 52.9 in August, down from 14 months of 55.8 recorded in July. While the number is still above the 50 mark that separates expansion from contraction, the result is the weakest since March 2018.
Commercial building was the best performing subsector in the month, followed by residential building.
“If there is anything positive to note from this month, it would be that the rate of hiring remained strong. However, persistent pressures from skills shortages and slow rates of new orders will continue to hit business optimism still trailing below the survey’s average,” Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply
Companies in the sector are optimistic that business activity will pick up over the coming 12 months, however, the degree of confidence eased to its lowest since May.
Weaker global economy and slowing local demand amid rising trade tensions are weighing on UK economic productivity. Manufacturing PMI grew at a 25-month low in August, another indication of slowing growth ahead of Brexit negotiation.
The pound fell against the US dollar to 1.2828.