Construction sector steady – but tough road ahead
CONSTRUCTION sector activity expanded in June at roughly the same pace as in May, but firms were less optimistic about future prospects, a survey of purchasing managers showed.
The Markit/Chartered Institute of Purchasing and Supply construction PMI eased slightly to 58.4 in June from 58.5 in May, which was its highest since September 2007.
That was the fourth consecutive reading above the 50 level which separates growth from contraction.
However, the survey signalled that firms were less upbeat about the future than last month, citing a planned increase in value added tax from January and public spending cuts.
“UK construction companies remained optimistic regarding their outlook for future business activity during June. However, confidence fell to the greatest extent in the survey history,” the survey said.
Construction accounts for around six per cent of economic output.