Skip to main content

Slowdown continues in UK construction market

Published by
World Cement,


August saw the weakest upturn in the UK construction market for a year, according to the latest IHS Markit/CIPS UK Construction Purchasing Managers Index (PMI), continuing a summer slowdown in the industry. Although the PMI remained above 50.0 – indicated market growth – the score of 51.1 represented a fall from the July’s 51.9 and the weakest overall performance since August 2016.

“UK construction companies indicated that lacklustre growth conditions persisted during August,” said Tim Moore, Association Director at IHS Market and the author of the index.

”Survey respondents noted that subdued business investment and concerns about the UK economic outlook had led to a lack of new work to replace completed projects, especially in the commercial building sector,” Moore continued.

Commercial work dropped at its fastest pace since July 2016, as clients opted to delay spending decisions and scale back planned projects. Civil engineering work was also weak, although residential construction bucked the trend, rising at a “robust and accelerated pace.”

“Any further drag on the construction sector overall was halted by the continuing strong performance by housebuilders, defying expectations with a good month” said Duncan Brock, Director of Customer Relationships at the Chartered Institute of Procurement and Supply (CIPS).

In August, BMI Research forecast a slowdown in UK construction sector growth, after a stronger 1H17. The research company anticipated annual growth of 1.4%, compared to 2.38%.

“There were signs than UK construction firms are bracing for the soft patch to continue into this autumn, with fragile business confidence contributing to weaker trends for job creation and input buying during August,” Moore concluded.

Read the article online at: https://www.worldcement.com/europe-cis/05092017/slowdown-continues-in-uk-construction-market/

You might also like

 WCT2020

Optimisation 2020

Optimisation 2020 provides a unique online forum for cement industry professionals to hear first-hand from experts through a series of exclusive presentations from cement producers and industry experts.

Find out more and register for the series »

 

 Spotlight

World Cement Spotlight with Rockwell Automation

World Cement Editor, David Bizley, sat down with Michael Tay, Advanced Analytics Product Manager at Rockwell Automation to discuss his recent article in World Cement.

Entitled ‘Smooth Sailing’, this article explains how machine learning can help save energy, reduce downtime and predict equipment failures, thus enabling the smooth running of cement plant operations.

Watch the interview now »

 

VDZ moves into new premises and reveals company rebrand

The group moved into its new premises at the beginning of September. The move to the new building has been accompanied by a new VDZ brand identity which can be seen for example on the company’s website or various print media.

 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

UK cement news Construction news