UK Construction Activity Contracts For 19th Consecutive Month

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An index measuring the health of the construction sector in the UK contracted for the 19th consecutive month in September, the latest survey from the Chartered Institute of Purchasing and Supply and Markit Economics said Friday.

The seasonally adjusted headline purchasers' managing index declined to 46.7 in September from 47.7 in the preceding month, and representing the fastest pace of reduction since June.

Commercial and civil engineering sectors continued to post reductions in output, while the housing sector posted its first rise in 22 months.

Incoming new business dropped at the slowest pace in the 19 months period of contraction. Reflecting the ongoing spare capacity and low workloads employment levels fell further. The pace of decline in staffing levels rose to its fastest pace in three months. The sub contractor usage fell further for the 22nd consecutive month.

Purchasing activity continued to fall, while the supplier's delivery time quickened further. Vendor improved lead times to win business. Meanwhile, input and output prices continued to decline.

Respondents showed positive expectations for business activity in the next 12 months, which in turn boosted confidence.

(Market News Provided by RTTNews)