UK construction PMI slumps to 47.0 in March, a big miss on expectations
|The construction sector activity in the UK economy deteriorated dramatically and returned to contraction in the month of March, a fresh report from Markit Economics showed on Wednesday.
The final Purchasing Managers' Index (PMI) in the UK plummeted to 47.0 points in March, sharply down from 51.4 booked in February and worse than a reading of 50.8 anticipated.
Key Points:
Business activity falls amid unusually bad weather in March.
Civil engineering work declines at sharpest pace for five years.
Input cost inflation moderates to a 20-month low.
Tim Moore, Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI®, noted: “Snow stopped play in March, as the unseasonal weather restricted overall activity, lengthened delivery times and triggered the fastest drop in new orders since July 2016. Civil engineering and commercial activity were the most affected, as housing became the best performer. However, the marginal improvement in residential building was softer than in most of 2017 indicating there may be something more serious ailing the sector, as respondents also cited continuing Brexit-related uncertainty and disappointment over the performance of the UK economy."
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