DCSIMG

Poor performing construction sector fuels UK economy growth fears

FEARS that the UK economy will shrink again were fuelled by the latest snapshot of the construction industry today as it revealed a worse-than-expected fall in activity.

The Markit/CIPS construction purchasing managers’ activity index fell to 49.3 last month, down from 50.9 in October and below the reading of 50 which represents growth.

City experts had predicted a 50.5 figure but reductions in house-building and commercial projects drove construction activity lower.

Tim Moore, senior economist and survey author at Markit, said: “A protracted decline in workloads, the double-dip UK recession and shrinking investment spending has made 2012 a year to forget for the construction sector.”

Ominously for the industry, he warned signs of a greater squeeze on client budgets suggested construction output was yet to hit “rock bottom”.

 

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