UK construction PMI steadies at 52.5 in May, a positive surprise
|The construction sector activity in the UK economy maintained its pace of expansion in the month of May, a fresh report from Markit Economics showed on Monday.
The final Purchasing Managers' Index (PMI) came in at 52.5, same as that booked in April and much better than a reading of 52.0 anticipated.
Key Points:
New business growth slips back into decline amid general uncertainty towards outlook.
Input price pressures sharpen on the back of higher fuel and steel costs.
Tim Moore, Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI®, noted: “The two millstones of uncertainty and weak economic growth gave the sector plenty to worry about this month, and whilst activity still grew, the lowest business confidence in seven months suggests the subdued pipeline of new work is having an effect. With a decline in new orders for a fourth time in five months, it was client hesitation and consumer diffidence towards spending that had construction activity stuttering.”
“Higher prices for fuel, raw material shortages, higher labor costs combined with slow delivery times were further obstacles to growth as firms nervously assessed their workforce for much-needed talent and sub-contractors could name their price."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.