FOREX TradingCharts.com

Financial News: UK Construction Activity Continues To Fall

UK Construction Activity Continues To Fall

04/02/2019 - 04:58:00 (RTTNews)

(RTTNews) - UK construction sector continued to shrink in March, albeit at a slightly slower pace, driven by sustained weakness in commercial work and civil engineering, survey data from IHS Markit showed on Tuesday.

The CIPS construction purchasing managers' index, or PMI, rose to 49.7 in March from 49.5 in February, in line with economists' expectations. However, a reading below 50 suggests decline in activity.

The sustained decline in total construction activity represented the first back-to-back fall in output levels since August 2016, IHS Markit said.

Commercial construction was the worst performing area in March with business activity dropping to the greatest extent since March last year.

The Brexit uncertainty and concerns about the domestic economic outlook apparently led to risk aversion among clients.

Civil engineering activity declined in March, but at a slower pace compared to February.

Meanwhile, residential building grew in March at the strongest pace, albeit modest, seen thus far this year.

Growth in new work and employment remained subdued as firms were reluctant to make major spending decisions amid the uncertainty linked to Brexit and also due to intense competition.

As seen in the manufacturing PMI survey, stock-building efforts by firms as part of their Brexit preparations, boosted purchasing activity. However, low stocks and stretched capacity among vendors resulted in markedly longer suppliers' delivery times.

Input price inflation accelerated sharply to its fastest level since November, thanks to higher raw material costs due to a weak sterling exchange rate and shortage.

Despite the troubles, business optimism rose from a four-month low in February, but remained subdued as economic and political uncertainty weighed on expectations for the next 12 months.

"Fears that the recent weakness of the UK construction sector may not be just a blip, but a sustained soft patch, were further fueled by latest data," IHS Markit economist Joe Hayes said.

"It is unlikely that next month will bring about any positive news given the challenges of a weaker UK economy, volatile pound and intense competition for new orders, as Brexit continues to cast a long shadow over the sector's future," CIPS Group Director Duncan Brock added.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Turkish Central Bank Drops Hawkish Stance (06 hr(s), 27 min(s), 28 sec(s) ago)
(RTTNews) - Turkey's central bank kept its key interest rate unchanged for a fifth consecutive ...Full Story»

U.S. Durable Goods Orders Jump Amid Rebound In Aircraft Demand (06 hr(s), 59 min(s), 28 sec(s) ago)
(RTTNews) - Reflecting a significant rebound in orders for transportation equipment, the Commerce ...Full Story»

U.S. Jobless Claims Rebound From Nearly 50-Year Low (07 hr(s), 11 min(s), 28 sec(s) ago)
(RTTNews) - After reporting first-time claims for U.S. unemployment benefits at a nearly fifty-yea ...Full Story»

Indonesia CB Holds Key Rate Steady For Fifth Month (07 hr(s), 26 min(s), 28 sec(s) ago)
(RTTNews) - Indonesia's central bank left the key interest rate unchanged for a fifth consecut ...Full Story»

U.S. Durable Goods Orders Jump 2.7% In March (07 hr(s), 37 min(s), 28 sec(s) ago)
(RTTNews) - Reflecting a significant rebound in orders for transportation equipment, the Commerce ...Full Story»

U.S. Weekly Jobless Claims Rebound More Than Expected (07 hr(s), 45 min(s), 28 sec(s) ago)
(RTTNews) - After reporting first-time claims for U.S. unemployment benefits at a nearly fifty-yea ...Full Story»

Spain Jobless Rate Rises Slightly (08 hr(s), 07 min(s), 28 sec(s) ago)
(RTTNews) - Spain's unemployment rate rose slightly in the first quarter, the statistical offi ...Full Story»

South Africa Producer Price Inflation At 4-Month High (08 hr(s), 42 min(s), 28 sec(s) ago)
(RTTNews) - South Africa's producer price inflation rose sharply in March to its highest level ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Turkish Central Bank Drops Hawkish Stance

04/25/2019 - 09:58 AM (RTTNews)
(RTTNews) - Turkey's central bank kept its key interest rate unchanged for a fifth consecutive ...Full Story>>

U.S. Durable Goods Orders Jump Amid Rebound In Aircraft Demand

04/25/2019 - 09:26 AM (RTTNews)
(RTTNews) - Reflecting a significant rebound in orders for transportation equipment, the Commerce ...Full Story>>

U.S. Jobless Claims Rebound From Nearly 50-Year Low

04/25/2019 - 09:14 AM (RTTNews)
(RTTNews) - After reporting first-time claims for U.S. unemployment benefits at a nearly fifty-yea ...Full Story>>

Indonesia CB Holds Key Rate Steady For Fifth Month

04/25/2019 - 08:59 AM (RTTNews)
(RTTNews) - Indonesia's central bank left the key interest rate unchanged for a fifth consecut ...Full Story>>

U.S. Durable Goods Orders Jump 2.7% In March

04/25/2019 - 08:48 AM (RTTNews)
(RTTNews) - Reflecting a significant rebound in orders for transportation equipment, the Commerce ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.