Latest data released by Markit - 6 October 2020
- Prior 48.0
That's not a good look as the catch-up in delayed projects is already losing steam and an extended decline in new orders is keeping sentiment in the construction sector more negative at the end of Q3.
Looking ahead, new work may be harder to come by given the virus situation and that could potentially stifle any potential for a robust recovery in the sector in general.
Markit notes that:
"Construction activity had looked to be stabilising, so the drop in the PMI to a three-month low in September comes as a disappointment and shows the sector is not quite out of the woods yet.
"The downturn in the PMI owed almost entirely to a sharp reduction in commercial activity, with the current environment causing businesses to think twice about commissioning new work. Tellingly, constructors aren't confident of a turnaround any time soon and remain pessimistic about the outlook for activity. Housing activity remains the only real positive.
"After years of rising employment in the constructor sector, the survey has pointed to a sustained period of retrenchment. There's also less work for sub-contractors, which, for one thing, is helping to limit rises in fees and thereby overall costs for construction businesses."
