UK Construction Industry Slows in July

Growth in Britain’s construction industry has slowed unexpectedly in July, hurt by a loss of momentum in housebuilding and civil engineering, according to a new survey that highlighted the economy’s reliance on the services sector.

The monthly Markit/CIPS UK construction purchasing managers’ index (PMI) published on Tuesday fell to 57.1 after hitting a four-month high of 58.1 in June, confounding a Reuters poll estimate for a rise to 58.4.

The slowdown may have reflected an easing of the surge in confidence among construction firms which followed May’s unexpectedly conclusive national election, survey compiler Markit said.

The UK economy picked up speed in the second quarter after a slowdown earlier in the year although it was driven largely by its dominant services sector. A separate Markit survey published on Monday showed UK manufacturing grew weakly in July.

The construction survey on Tuesday showed housebuilding activity increased at the slowest pace since April, marking one of the weakest expansions since mid-2013 and underlining the challenge that policymakers face in tackling Britain’s chronic housing shortage.

via The Guardian

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