Housebuilding slows as UK construction drops to seven-month low
Here is some further evidence to support my assertion about the impact of a continuing lack of supply in the housing market – things don’t seem to be getting much better.
UK construction activity fell to a seven-month low in November, as a broad-based slowdown suggested the sector is likely to weigh on growth in the final three months of this year.
Housebuilding, which has been the main driver of growth in recent years, slipped behind commercial property last month, according to survey compiler Markit, while civil engineering activity also eased.
The Markit/CIPS construction Purchasing Managers’ Index (PMI) fell to 55.3 in November, from 58.8 in October.
While activity remained well above the 50 level that signals an expansion, it was the slowest pace of growth since April and below economists’ expectations for a slight easing to 58.5.
Markit noted that aside from April’s pre-election slowdown, overall output was the weakest in more than two years, and the disappointing data saw the pound slip against the euro and dollar on Wednesday morning.
However, sterling quickly clawed back its losses against the single currency after weaker than expected inflation data in the eurozone.