Investing.com - U.K. construction sector activity in April showed its weakest growth in almost three years amid stalling new business volumes, industry data showed on Wednesday.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index fell to a seasonally adjusted 52.0 last month from March’s reading of 54.2. That was its slowest pace since June 2013.
Economists had expected the index to inch down to 54.0 in March.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
Markit indicated that the April data signaled a further loss of momentum across the UK construction sector, with new order volumes stagnating and overall business activity expanding at its slowest pace since June 2013.
Subdued demand conditions contributed to one of the weakest rises in employment numbers recorded over the past three years.
At the same time, construction firms indicted a softer increase in input buying and noted a renewed fall in optimism regarding the year-ahead business outlook.
Commenting on the report, David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said, “Fears over weaker UK and global economic growth dealt a blow to confidence in the construction sector, leading to delays in new spending commitments.”
“The prospect of the EU referendum and its outcome in June are likely to add to uncertainty too, with many construction firms preferring to wait and see what happens before making any decisions,” Noble added.
GBP/USD was trading at 1.4502 from around 1.4491 ahead of the release of the data, while EUR/GBP was at 0.7916 from 0.7918 earlier.
Meanwhile, European stock markets were trading broadly lower. London’s FTSE 100 dropped 0.55%, the EURO STOXX 50 lost 0.51%, France's CAC 40 slipped 0.14%, while Germany's DAX fell 0.32%.