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Bloomberg
UK construction growth slowed more than forecast in August, providing further evidence that the nation’s economy is losing momentum.
IHS Markit’s Purchasing Managers’ Index for the industry fell to 52.9 last month from a 14-month high of 55.8 in July, the firm said on Tuesday. The reading was the lowest since May and below the 54.9 forecast by economists in a Bloomberg survey. A reading above 50 indicates expansion.
Markit’s survey showed a “sharp slowdown†in house building in August, while work on civil engineering projects decreased for the first time in five months. New business growth also ebbed, with some respondents noting Brexit-related uncertainty was holding back investment.
The pound extended a decline after the report and was 0.4 percent weaker at $1.2821 in London. The report is the latest to suggest the UK economy is cooling. A gauge for manufacturing showed growth unexpectedly slowed to the weakest in two years last month.