LONDON (MNI) – The UK construction sector saw activity declerate
gently in May, with no echo of the collapse in activity seen in the
manufacturing sector last month, according to Markit/CIPS.
The data, the second of CIPS’ May triptych, showed construction
activity slowing to 54.4 from 55.8 in April, a three-month low. The
manufacturing PMI showed that sector contracting sharply in May, posting
its second steepest monthly fall in the survey’s 20-year history, but
these figures show the construction sector continuing to expand.
All eyes now will be on the CIPS data for the dominant services
sector, which are due out Thursday ahead of the Bank of England Monetary
Policy Committee’s monthly meeting. The BOE was handed the May services
data last week, according to Markit.
The construction sector survey, however, showed some signs of
weakness at the detail.
Business confidence dropped sharply from April and new business
growth hit a four-month low, with the sharpest monthly fall since June
2010. CIPS said some firms said weaker economic confidence was acting as
a drag on growth.
“May’s survey highlighted a big fall-back in new business growth
following the large spurt of order gains seen during the spring. A
softer trend in new projects set the tone for the construction sector in
May,” Tim Moore, senior economist at Markit, said.
-London newsroom: +44 207 862 7491; email:drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$]
