The UK construction industry grew at a far weaker rate than expected in July, according to the latest IHS Markit figures.
The Markit/CIPS construction PMI number fell to 51.9 in July, a significant fall from 54.8 in June. However, anything above 50 signals growth.
Economists polled by Reuters predicted a much smaller dip in the headline number to 54.5.
Tim Moore from IHS Markit commented on the figure:
“July data reveals a growth slowdown in the UK construction sector, mainly driven by lower volumes of commercial development and a loss of momentum for house building.
“Worries about the economic outlook and heightened political uncertainty were key factors contributing to subdued demand.
“Construction firms reported that clients were more reluctant to spend and had opted to take longer in committing to new projects.”
The sector was dragged down by a sharp slowdown in commercial building, but boosted by an acceleration in the civil engineering sector.
