Growth in Britain’s construction industry was its weakest in nine months in January after a short-lived recovery in December, a survey published on Tuesday showed.
The Markit/CIPS UK Construction Purchasing Managers’ Index weakened to 55.0 from 57.8, below the median forecast of 57.5 in a Reuters poll of economists.
Order books grew at the weakest pace in four months and construction firms took on staff at the slowest rate since September 2013.
Housebuilding and commercial property work were the biggest drivers behind the slowdown in January, according to survey compiler Markit.
“UK construction firms struggled for momentum at the start of this year, with heightened economic uncertainty acting as a brake on new orders and contributing to one of the weakest rises in output levels since the summer of 2013,” Markit economist Tim Moore said.
The PMI contrasted with a similar gauge of Britain’s manufacturing sector published on Monday which showed the factory sector had a stronger-than expected start to 2016, raising hope that Britain would not be hit too hard by a slowdown in the global economy.
Analysts look at the surveys for the early signs they give about the broader economy. However, the PMIs for the construction sector have been at odds with data used in official growth figures in recent months.
Optimism among construction companies waned to its lowest level since December 2014, the PMI showed.
“Taken together with the slowdown in new order growth, the latest survey suggests that construction companies are braced for a relatively subdued first quarter,” Moore said.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.