We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

UK Dec construction PMI hits 6-month low


Homebuilding activity declined for seventh successive month

Article comments

The UK’s construction Purchasing Managers’ Index (PMI), an industry survey of activity in the sector, plummeted to a level of 48.7 in December from 49.3 in November.

A level below 50 is indicative of a contraction in the sector. According to CIPS and Markit, who compile the data, December’s level was the lowest since June 2012. It was also the seventh consecutive month in which overall volumes of new contracts had fallen. Additionally, the rate of contraction in new orders was the fastest since April 2009.

Homebuilding activity declined for the seventh successive month, while commercial building work declined for the fifth month in a row. Only civil engineering bucked the overall December trend with a modest rise in activity.

Tim Moore, senior economist at Markit, said, “December rounded off a miserable year for the UK construction sector. Survey respondents are also relatively subdued about the 2013 outlook amid reports from their clients that budgets will be under even greater pressure over the year ahead.”

Commenting on the news, Howard Archer, chief UK economist at IHS Global Insight, said business expectations among UK construction companies remained low compared to long term norms in December, although they did at least rise from the 47-month low seen in November.

“October’s jump in construction output means that the sector may have expanded overall in the fourth quarter of 2012. This would be in marked contrast to the first three quarters and would lift the economy’s chances of avoiding a renewed dip in GDP in the fourth quarter of last year,” he told CFOWorld.

Share:

Recommended Articles

Comments

UK Dec construction PMI hits 6-month low
Financial Planning

Could CFOs do more to boost shareholder value?

Could CFOs do more to boost shareholder value?

Working capital improvements start to pay off, but more could be donemore ..


Balfour rejects Carillion's "improved" £2bn merger bid

Balfour board says the offer does not address its two main concernsmore ..

Persimmon posts 57% rise in pretax profits

The FTSE100 housebuilder credits Help to Buy with encouraging growthmore ..

Inflation rate eases to 1.6% thanks to generous summer sales

Price drops in clothing and food biggest contributor to fall in inflationmore ..

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unansweredmore ..

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *