Investing.com – Britain's construction sector slowed more-than-expected in October, expanding at its weakest pace in eight months, industry data showed on Tuesday.
In a report, market research firm Markit said their construction purchasing managers' index fell to a seasonally adjusted 51.6 in October, after rising to 53.8 in September.
Economists had expected the index to decline to 53.0 in October.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, chief executive officer at the Chartered Institute of Purchasing & Supply David Noble said, “The recent growth in the construction sector seems to be petering out. Further declines look inevitable as nervy customers and a spendthrift public sector put firms in a precarious position.”
He added, “Construction will have to look much harder for new contracts going forward, so it’s no surprise that many are cutting jobs and reducing purchasing activity to provide a safety net against further falls.”
Following the release of that data, the pound pared gains against the U.S. dollar, with GBP/USD gaining 0.10% to hit 1.6051.
Meanwhile, European stock markets were up. The FTSE 100 gained 0.73%, the EURO STOXX 50 rose 0.24%, France’s CAC 40 added 0.28%, and Germany's DAX was up 0.32%.
In a report, market research firm Markit said their construction purchasing managers' index fell to a seasonally adjusted 51.6 in October, after rising to 53.8 in September.
Economists had expected the index to decline to 53.0 in October.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, chief executive officer at the Chartered Institute of Purchasing & Supply David Noble said, “The recent growth in the construction sector seems to be petering out. Further declines look inevitable as nervy customers and a spendthrift public sector put firms in a precarious position.”
He added, “Construction will have to look much harder for new contracts going forward, so it’s no surprise that many are cutting jobs and reducing purchasing activity to provide a safety net against further falls.”
Following the release of that data, the pound pared gains against the U.S. dollar, with GBP/USD gaining 0.10% to hit 1.6051.
Meanwhile, European stock markets were up. The FTSE 100 gained 0.73%, the EURO STOXX 50 rose 0.24%, France’s CAC 40 added 0.28%, and Germany's DAX was up 0.32%.