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Construction output falls for fourth consecutive month
04-03-2013 12:49
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Construction output declined for the fourth month in a row, the Markit/CIPS construction PMI showed Monday.
The index dropped to 46.8 from 48.7 in January, and significantly below consensus expectations of 49.0. Anything below 50 indicates a contraction.
The reading signalled the fastest pace of contraction since October 2009, and according to the data collectors reflected a return to declining levels of commercial building work and a sharp decrease in civil engineering activity.
The data was described by CIPS Chief Executive David Noble as offering "barely a crumb of comfort".
Tim Moore, Senior Economist at Markit and author of the Markit/CIPS Construction PMI said: "This is undoubtedly a dismal set of data for the UK construction sector, especially the sharp falls in commercial building work and civil engineering activity.
"With total output falling at the steepest pace for over three years, the latest PMI survey is confirmation that January's construction decline was not entirely snow-related. Downward pressure on client budgets, alongside subdued public sector spending, again led to lower output levels and reduced new order inflows.
He added that the only exception to the overall output trend was a stabilisation in residential construction, with eight months of sustained decline ending in February.
The index dropped to 46.8 from 48.7 in January, and significantly below consensus expectations of 49.0. Anything below 50 indicates a contraction.
The reading signalled the fastest pace of contraction since October 2009, and according to the data collectors reflected a return to declining levels of commercial building work and a sharp decrease in civil engineering activity.
The data was described by CIPS Chief Executive David Noble as offering "barely a crumb of comfort".
Tim Moore, Senior Economist at Markit and author of the Markit/CIPS Construction PMI said: "This is undoubtedly a dismal set of data for the UK construction sector, especially the sharp falls in commercial building work and civil engineering activity.
"With total output falling at the steepest pace for over three years, the latest PMI survey is confirmation that January's construction decline was not entirely snow-related. Downward pressure on client budgets, alongside subdued public sector spending, again led to lower output levels and reduced new order inflows.
He added that the only exception to the overall output trend was a stabilisation in residential construction, with eight months of sustained decline ending in February.
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