💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Brexit worries put freeze on UK construction in January: PMI

Published 02/04/2019, 04:33 AM
Updated 02/04/2019, 04:35 AM
© Reuters. FILE PHOTO:  Cranes fill the sky above a construction site in central London

LONDON (Reuters) - Growth in Britain's construction industry ebbed in January to its weakest since icy weather beset the sector last March, as uncertainty around Brexit dragged particularly on commercial building work, a business survey showed on Monday.

The IHS Markit/CIPS UK Construction Purchasing Managers' Index (PMI) fell to 50.6 from 52.8 in December, below all forecasts in a Reuters poll of economists that had pointed to a reading of 52.4.

Growth in the housebuilding and civil engineering sectors slowed sharply and activity contracted in the commercial sector for the first time since March, when construction was hit by unusually cold temperatures.

Construction firms hired staff at the slowest pace since July 2016, just after the Brexit referendum, as optimism soured ahead of Britain's departure from the European Union, scheduled in less than two months' time.

"Delays to client decision-making on new projects in response to Brexit uncertainty was cited as a key source of anxiety at the start of 2019," Tim Moore, economist at survey compiler IHS Markit, said.

A similar survey of the manufacturing sector also showed a sharp slowdown underway, caused by a cooling global economy as well as Brexit uncertainty.

Prime Minister Theresa May, under pressure from her own Conservative Party, wants to reopen a Brexit treaty with the European Union to replace a contested Irish border arrangement, something Brussels has rejected.

Investors have urged the government to ensure an orderly exit from the club it joined in 1973.

The closely watched IHS Markit/CIPS survey of services companies, which accounts for the bulk of private-sector activity, is due on Tuesday.

© Reuters. FILE PHOTO:  Cranes fill the sky above a construction site in central London

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.