UK development trade exercise picks up in February – PMI

LONDON, March 2 (Reuters) – Growth in Britain’s struggling development trade picked up barely in February, led by the industrial sector, however uncertainty linked to Brexit continued to weigh on order books, a survey confirmed on Friday.

FILE PHOTO: Construction cranes are seen on a constructing web site in central London, Britain, July 31, 2017. REUTERS/Hannah McKay/File Photo

The IHS Markit/CIPS UK Construction PMI rose to 51.four from 50.2 in January, on the prime finish of forecasts in a Reuters ballot of economists that had pointed to a studying of 50.5.

Construction output suffered its greatest drop in additional than 5 years through the ultimate three months of 2017, in response to official figures final month, marking the third consecutive quarter of decline.

Year-on-year development for the financial system as a complete in 2017 was the weakest among the many G7 group of wealthy nations throughout that quarter, partly on account of weaker client demand attributable to greater inflation after June 2016’s Brexit vote.

February’s PMI confirmed sudden drop in housebuilding throughout January turned out to be a blip, whereas development in industrial development touched a nine-month excessive.

But the civil engineering sector suffered its worst efficiency in 5 months and total business confidence remained weak. Order books contracted for a second month in a row, boding poorly for future exercise.

“The construction sector endured another difficult month during February, with fragile business confidence, entrenched political uncertainty and softer housing market conditions all factors keeping growth in the slow lane,” stated Tim Moore, an affiliate director at IHS Markit, which compiles the PMI.

Some respondents within the survey stated Brexit-related uncertainty continued to weigh on decision-making.

Construction makes up solely about 6 % of British financial output however is watched intently as a information to funding and sentiment within the wider financial system.

The intently watched PMI overlaying the a lot bigger providers sector is due on Monday.

Reporting by Andy Bruce. Editing by Hugh Lawson

Our Standards:The Thomson Reuters Trust Principles.

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