CIPS News


UK construction PMI drops

CIPS 3 July 2012

Disappointing news as the overall index shows several points fall

The UK Markit/CIPS Purchasing Managers’ Index® (PMI®) for the construction sectors reports a disaapointing fall in activity in June.

Output and new orders fall as the index posts 48.2, down from May's 54.4.

“The renewed decline in construction output and employment are a reflection of the weakening trend in new orders seen in recent months. The contraction was accompanied by a similar fall in cost inflation, but this is scant consolation for businesses, as the global economy continues to cast a shadow over the industry.

"Sharp drops in new civil engineering and housing activity were almost matched by the slowdown in commercial activity. The anomaly of the double bank holiday at the start of the month will have had some negative impact but the underlying sluggishness throughout the industry could point towards a much softer period heading into the third quarter.

"Added to this is concern about the ability of firms to respond quickly to any rise in new orders.  Delivery times for inputs lengthened again in June due to the low stocks reportedly being held by suppliers, highlighting a further worry for the health of the sector."

For press enquiries, call the Press office on 01780 756777 or email: press@cips.org. The PMI data is available to purchase

 

 

 

 

 

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