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New construction orders suffer second biggest drop since 2010
NEW CONSTRUCTION work collapsed in July, according to the latest purchasing managers’ index (PMI) survey from Markit.
The top line index – showing the overall state of the construction sector – crept up to 50.9, from 48.2 in June, above the no-change level of 50, but well below the long-run average of 54.2. And new orders shrank markedly, having only fallen faster once since January 2010.
“July’s survey offered little sign of an imminent rebound in the UK construction sector, with total activity rising only marginally after well documented temporary factors had weighed on output last month,” said Tim Moore, senior economist at Markit.