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UK builders decide up tempo in October, however Brexit worries develop – PMI

FILE PHOTO: Construction work is seen on high-rise workplace blocks within the monetary district of London, Britain, July 11, 2018. REUTERS/Phil Noble/File Photo

LONDON (Reuters) – Britain’s building sector recovered final month from a slowdown in September due to a bounce-back in civil engineering tasks, however confidence within the outlook slumped to a close to six-year low forward of Brexit, a survey confirmed on Friday.

Data agency IHS Markit’s buying managers’ index for the development trade rose to 53.2, its second-highest stage in 16 months. That was up from a six-month low of 52.1 in September and above all of the forecasts in a Reuters ballot of economists.

Civil engineering grew on the strongest tempo since July of final 12 months, offsetting the weakest development in home constructing and business building in seven and 5 months respectively.

The strategy of Brexit in lower than 5 months’ time, with no deal carried out but between London and Brussels, was weighing on the sector, IHS Markit stated.

Britain’s economic system has slowed because the Brexit vote in June 2016 and lots of corporations have expressed concern in regards to the danger of disruption if Britain leaves the EU in March with out a deal.

Construction corporations’ future expectations had been the weakest since December 2012, when Britain’s economic system was nonetheless struggling to emerge from the results of the global monetary disaster. New orders had been the slowest since May.

“Alongside muted new project intakes, firms highlighted uncertainty related to Brexit and the economy as undermining confidence,” IHS Markit stated.

A PMI survey for British manufacturing confirmed a pointy slowdown in development amongst factories in November.

The same survey for Britain’s dominant companies sector is due on Monday.

Reporting by William Schomberg; Editing by Hugh Lawson

Our Standards:The Thomson Reuters Trust Principles.

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