UK construction activity slows in July
The Chartered Institute of Purchasing and Supply(CIPS)/Markit construction PMI index showed activity slowed considerably last month to a four-month low.
The index slumped to 54.1 in July from 58.4 in June – suggesting the sector may have peaked.
However, the index is still above the crucial 50 level, which indicates the sector is growing.
“The survey points to a marked loss of momentum in construction activity in July,” according to Howard Archer, an economist at IHS Global Insight.
“This reinforces suspicion that the jump in construction output in the second quarter reported in the preliminary national accounts substantially overstated the true strength of the sector — even allowing for the fact that there had been some catch-up in activity due to the very bad weather at the start of the year,” he added.
Construction accounts for around 6% of Britain’s economic output.
Meanwhile, the index comes a day after the CIPS/Markit manufacturing PMI revealed UK manufacturing activity slowed further in July.
The closely-watched index dipped slightly from 57.6 in June to 57.3 in July.
However, the reading exceeded forecasts of 57.0 and is still close to May’s 15-year high of 58.1.