FOREX TradingCharts.com

Financial News: UK Construction Shrinks For Fourth Month As New

UK Construction Shrinks For Fourth Month As New Work Falls Most In Over A Decade

09/03/2019 - 05:10:00 (RTTNews)

(RTTNews) - UK construction sector contracted for the fourth consecutive month in August as new work declined the most in over ten years, leading business optimism to plummet to over a decade-low, data from IHS Markit's purchasing managers' survey showed on Tuesday.

The IHS Markit/CIPS UK Construction Total Activity Index fell to 45 from 45.3 in July. Economists had forecast a modest improvement in the reading to 45.9.

A reading below 50 suggests contraction in the sector and the score remained below this neutral mark for the fourth straight month.

In commercial building, the Brexit uncertainty continued to encouraged risk aversion among constructors, and consequently many clients have set tighter budgets.

Civil engineering activity dropped at a relatively sharp pace, while the decline in house building was the smallest since the downturn began in June.

New orders in the construction sector fell at the sharpest pace since March 2009 as weak demand conditions led to a shortage of tender opportunities and strong competition, especially in commercial building. Orders have dropped in each month since April.

Despite the weaker demand, employment decreased only marginally and at the slowest pace since the declining trend began in April, thanks to tight labor market conditions. Companies trimmed the payroll through the non-replacement of voluntary leavers.

Input buying decreased for the fifth straight month, marking the longest stretch of decline since the first half of 2013, due to softer demand. Input cost inflation slowed to its lowest since March 2016.

Business optimism decreased for a second straight month and was the weakest since December 2008 with firms mainly concerned about domestic political uncertainty and a corresponding drop in client spending.

"This provides an early signal that UK construction companies are braced for a protracted slowdown as a lack of new work to replace completed contracts begins to bite over the next 12 months," Tim Moore, economics associate director at IHS Markit, said.

Business confidence is now close to the lowest depth seen in the previous recession, Duncan Brock, group director at CIPS, said.

"The reality is, if a revival of confidence and a flood of new orders return to the construction sector in the coming weeks, much like a large tanker turning in a dock, there is little room for the sector to improve in the last quarter of the year," Brock said.

"It's likely September's data will be even more discouraging."

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


RBA Minutes On Tap For Tuesday (01 hr(s), 09 min(s), 52 sec(s) ago)
(RTTNews) - The Reserve Bank of Australia will release the minutes from its September 3 meeting on ...Full Story»

Czech Producer Price Inflation Steady (08 hr(s), 40 min(s), 52 sec(s) ago)
(RTTNews) - Czech producer price inflation remained stable in August, figures from the Czech Stati ...Full Story»

Croatia Inflation Slows In August (08 hr(s), 42 min(s), 52 sec(s) ago)
(RTTNews) - Croatia's consumer price inflation slowed in August after rising in the previous m ...Full Story»

Ireland Trade Surplus Rises In July (08 hr(s), 46 min(s), 52 sec(s) ago)
(RTTNews) - Ireland's trade surplus increased in July, amid a rise in exports and imports, fig ...Full Story»

Italy Inflation Steady In August (08 hr(s), 52 min(s), 52 sec(s) ago)
(RTTNews) - Italy's consumer price inflation remained stable in August, final data from the st ...Full Story»

Turkey Retail Sales, Jobless Rate Fall (08 hr(s), 58 min(s), 52 sec(s) ago)
(RTTNews) - Turkey retail sales declined at the fastest rate in three months in July and the unemp ...Full Story»

New York Manufacturing Activity Little Changed In September (09 hr(s), 35 min(s), 52 sec(s) ago)
(RTTNews) - New York-area manufacturing activity was little changed in the month of September, acc ...Full Story»

India Wholesale Price Inflation Steady In August (10 hr(s), 15 min(s), 52 sec(s) ago)
(RTTNews) - India's wholesale price inflation was stable in August, data from the Ministry of ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

RBA Minutes On Tap For Tuesday

09/16/2019 - 18:00 PM (RTTNews)
(RTTNews) - The Reserve Bank of Australia will release the minutes from its September 3 meeting on ...Full Story>>

Czech Producer Price Inflation Steady

09/16/2019 - 10:29 AM (RTTNews)
(RTTNews) - Czech producer price inflation remained stable in August, figures from the Czech Stati ...Full Story>>

Croatia Inflation Slows In August

09/16/2019 - 10:27 AM (RTTNews)
(RTTNews) - Croatia's consumer price inflation slowed in August after rising in the previous m ...Full Story>>

Ireland Trade Surplus Rises In July

09/16/2019 - 10:23 AM (RTTNews)
(RTTNews) - Ireland's trade surplus increased in July, amid a rise in exports and imports, fig ...Full Story>>

Italy Inflation Steady In August

09/16/2019 - 10:17 AM (RTTNews)
(RTTNews) - Italy's consumer price inflation remained stable in August, final data from the st ...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.