The UK’s construction industry recorded its fastest fall since June 2009 as the sector came under pressure from economic uncertainty prompted by Britain’s vote to leave the EU.
The Markit/CIPS construction purchasing managers’ index (PMI) was 45.9 in July, down slightly from 46 in June but above economists’ expectations of 44. A reading above 50 indicates growth.
But it added that new orders had fallen at a slower pace in July than the month before, indicating some resilience from the sector despite concerns over the Brexit vote.
It comes on the same day builders’ merchants Travis Perkins said in a second-quarter update that it was suffering from weaker demand as a result of the EU referendum but cautioned that it is too early to say what the full impact will be.
Concerns about an imminent slowdown in the UK economy were underscored on Monday when the PMI for Britain’s manufacturing industry showed the sector had slumped to its lowest level for more than three years, hitting 48.2 in July, down from 52.4 the month before, as it counted the cost of Britain’s decision to ditch the EU.Click here for reuse options!