Investing.com – Britain's construction sector activity weakened more-than-expected in September, slowing to near-stagnation, industry data showed on Tuesday.
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 50.1 in September from 52.6 in August.
Economists had expected the index to decline to 51.6 in September.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
According to the data, a contraction in new orders was behind the slowdown in output growth. U.K. construction companies reported a reduction in new business received during September, the first contraction since February 2010.
Confidence remained relatively subdued, with uncertainty over future economic conditions weighing on optimism.
Commenting on the report, chief executive officer at the CIPS David Noble said, “Delayed and cancelled projects, more competitive tendering, and general uncertainty over economic conditions are putting a dampener on things, resulting in the first reduction of new orders in 19 months.”
Following the release of that data, the pound added to losses against the U.S. dollar, with GBP/USD shedding 0.25% to trade at 1.5393.
Meanwhile, European stock markets were sharply lower after the open. The FTSE 100 tumbled 2.35%, the EURO STOXX 50 retreated 2.7%, France’s CAC 40 dropped 2.7%, while Germany's DAX plunged 3.1%.
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 50.1 in September from 52.6 in August.
Economists had expected the index to decline to 51.6 in September.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
According to the data, a contraction in new orders was behind the slowdown in output growth. U.K. construction companies reported a reduction in new business received during September, the first contraction since February 2010.
Confidence remained relatively subdued, with uncertainty over future economic conditions weighing on optimism.
Commenting on the report, chief executive officer at the CIPS David Noble said, “Delayed and cancelled projects, more competitive tendering, and general uncertainty over economic conditions are putting a dampener on things, resulting in the first reduction of new orders in 19 months.”
Following the release of that data, the pound added to losses against the U.S. dollar, with GBP/USD shedding 0.25% to trade at 1.5393.
Meanwhile, European stock markets were sharply lower after the open. The FTSE 100 tumbled 2.35%, the EURO STOXX 50 retreated 2.7%, France’s CAC 40 dropped 2.7%, while Germany's DAX plunged 3.1%.