Construction sector activity is getting closer to contracting, according to IHS Markit’s latest Purchasing Managers’ Index.
Figures from the PMI are shown as a number between 0 and 100, with anything over 50 indicating growth and anything under 50 signalling contraction.
The report, published on Friday 9th February, said that ‘UK construction companies reported a subdued start to 2018’ after showing a drop from 52.2 in December to 50.2 last month.
Speaking of the surprisingly slow start to the year, Duncan Brock, head of customer relationships at the Chartered Institute of Procurement and Supply (CIPS), said:
“The construction PMI delivered meagre results for January as any hopes for a stellar start to the year were eclipsed by a surprisingly poor show from the housing sector, offering its worst performance since July 2016.”
The decline in activity in January fell largely down to the collapse of Carillion and the contraction in housebuilding activity.
“A return to contraction in residential building activity was accompanied by near-stagnant commercial and civil engineering activity.
“New orders declined, linked by many companies to market uncertainty,” IHS Markit said.
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