Construction industry reports a slowdown
The Markit/CIPS UK Construction purchasing managers’ index (PMI) showed a reading of 52.2 in December, down from 53.1 in November and below economists’ forecasts of 53.1.
A reading above 50 indicates growth.
Despite the industry struggling to fire on all cylinders, housebuilding levels proved robust and new orders accelerated at the fastest pace since May.
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Hide AdHowever, these bright spots failed to inspire a cheerier outlook from firms, with the balance of companies expecting a boost to output levels in 2018 proving one of the weakest for four-and-a-half years.
The update comes as output in the UK manufacturing industry achieved ‘solid growth’ last month, but eased back from a near four-and-a-half-year high when separate PMI data was released on Tuesday.
Tim Moore, IHS Markit’s associate director, said: ‘The UK construction sector achieved a moderate expansion of business activity at the end of 2017, although the recovery remained uneven and slowed overall since November.’