–Sep CIPS Construction Index 50.1 Vs 52.6 In Aug: Markit/Reuters
LONDON (MNI) – The UK construction industry saw negligible growth
in September, according to the latest CIPS/Markit survey.
The September CIPS construction index came in at 50.1, a shade
above the 50 contraction/expansion line, and well below analysts’ median
forecast for a 51.7 outturn.
The September reading was down from 52.6 in August and, on the face
of it, shows the construction industry struggling to make a positive
contribution to UK growth. The survey did, however, show construction
sector employment rising, albeit marginally, for the first time in four
months.
The CIPS construction survey followed the release of the
manufacturing one which showed a surprise return to growth in that
sector.
The September manufacturing purchasing managers index came in at
51.1, well above analysts’ median forecast and up from a revised 49.4 in
August.
“UK construction companies continued to struggle in the face of
growing concerns about the wider economy, with weaker client confidence
leading to a reduction in new business received during September,” Sarah
Bingham, economist at Markit, said.
“Activity growth slowed to near-stagnation, with constructors
relying on work on existing contracts to support output. This therefore
bodes ill for construction activity in the coming months,” she added.
–London newsroom: +44 207 862 7491; email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$]