Sharp contraction in construction sector

04/07/2012 07:51:44

 

The British construction market shrunk at its quickest rate in two and a half years in June, leaving the country with a slim chance of an economic recovery in the near future.

A measurement of more than 50 in the Markit/CIPS report shows growth, but the market dropped from 54.4 in May to 48.2 last month, which is the largest month-by-month decline since February 2009.

On top of the Queen's Jubilee weekend and poor weather, the report also showed that there were weak financial conditions, the poorest confidence levels in eight months and a drop in worker numbers for the first time since February.

The markets that showed the worst figures were civil engineering and housebuilders, which both suffered their first declines since January and showed their weakest increase in market activity for two years and four months.

Chief European and UK economist at IHS Global Insight, Howard Archer, said: "The construction purchasing managers' survey for June was substantially weaker than expected and hugely disappointing."

The amount of new work shrunk for the first time since October and output dropped to its smallest amount in two and a half years.

Copyright Press Association 2012

 

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