UK Construction output falls steeply
The Markit/CIPS UK Construction PMI® for June read 43.1, sharply down from 48.6 in May: the steepest reduction in overall construction output since April 2009.
All three categories recorded a decline. The fall in house building was the largest in three years, with companies citing weaker demand conditions and concerns over the outlook for residential sales. Commercial work fell for the sixth consecutive month and remained the worst performing sub category. The latest decline was the steepest since December 2009: Brexit uncertainty and delayed project starts were blamed. Civil engineering activity also declined at the fastest rate since October 2009. Again, delayed contracts and domestic political uncertainty were blamed.
Total new construction business decreased for the third month running, Markit assessing the decline as the sharpest since April 2009.
Forward looking confidence remained at the seven-month low level recorded in May. However, companies appeared to be retaining staff in anticipation of recovery in sales.