THE WEAK UK housing market and cuts to government building budgets have slowed growth in construction activity, Markit’s purchasing managers’ index (PMI) showed yesterday.
The headline index fell from 53.2 in December to 51.4 in January, while the employment index fell to 50 – the no-change mark.
Construction output has now increased for 13 consecutive months, but January saw the weakest growth in four months and fell below the long-term trend rate of expansion.
Commercial activity increased in the month, but declines in housing and civil engineering slowed overall growth.
“It is clear that many businesses have replenished their levels of optimism and have high expectations for improving economic conditions and new contracts,” said an upbeat David Noble from the Chartered Institute of Purchasing and Supply.
