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04.06.2019 16:44

UK Construction PMI fell sharply in May

According to the report from IHS Markit/CIPS, UK construction companies indicated a renewed decline in total business activity during May. Lower volumes of commercial work and civil engineering activity more than offset a modest increase in house building. New orders also decreased across the construction sector, with survey respondents noting that subdued domestic economic conditions had led to project delays and fewer tender opportunities. Average input prices continued to rise in May, which was often attributed to higher fuel and energy costs. However, the overall rate of input price inflation eased to its weakest since June 2016. Meanwhile, construction firms signalled a fall in business optimism to its weakest since October 2018.

At 48.6 in May, down from 50.5 in April, the headline seasonally UK Construction PMI registered below the 50.0 no-change mark for the third time in the past four months. The latest reading was the lowest since the snow-related downturn in construction output during March 2018.


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