Mubasher: Activity in the UK construction industry grew at a slow momentum for the second month in a row in September, data released on Tuesday revealed.
The UK construction purchasing managers' index (PMI) declined to 52.1 last September from 52.9 in August, according to a survey from IHS Markit and Chartered Institute of Procurement and Supply (CIPS) showed.
“With house building, commercial and civil engineering all losing momentum, […] a lack of new work to replace completed projects meant that civil engineering saw an overall decline in activity for the second month running and remained the main laggard,” IHS Markit associate director Tim Moore said.
Civil engineering was the worst performing segment during September, while house and commercial construction sustained their growth at a resilient momentum, despite signals of weaker expansion last August.
However, the growth of new work volume picked up steam during the month, at the strongest level seen since December 2016, which was attributed to solid demand and an upturn in new tender invitations.
In addition, a strong rise in the level of job creation was reported in September, at the fastest pace seen since December 2015, owing to rising demand and tight labour market conditions.
An increase of demand for inputs added to a sharp and faster rise in average cost burden. Total input price inflation saw the fastest momentum during September in three months, which was generally ascribed to fuel and raw material price surges.
Outlook for the year ahead slid further during the month, marking the second lowest since February 2013. Construction firms cited political uncertainty and looming Brexit.
By 8:34 am GMT, the GBP/USD pair dropped 0.48% to $1.2980, while the EUR/GBP pair stood at GBP 0.8878.
