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The Markets
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The Markets
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Manufacturing & engineering

Construction growth slows on weakened housebuilding sector

Britain's construction sector grew for the fourth consecutive month in June, however, it was slightly held back after a dip in output from the housebuilding industry.

S&P Global's UK construction purchasing manager' index (PMI) reached 52.2 last month, down from May's 54.7 and lower than the 53.5 that markets had hoped for.

Keeping above the 50 mark that separates the industry from growth and contraction, much of the gains came from commercial activity, while housing output fell.

The dip in the housebuilding sector came after it recorded its first increase in 19 months in May.

Andrew Harker at S&P Global said: "Continued growth of the UK construction sector in June meant that the sector has recorded sustained expansion throughout the second quarter of the year.

"While there were signs of a slowdown in the latest survey period, most notably around housing activity, firms indicated that a slowdown in new order growth was in part related to election uncertainty.

"We may therefore see trends improve once the election period comes to an end."

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