UK construction PMI at 18-mth high in Aug-CIPS

inspector_monkfish

10:04 02Sep09 - UK construction PMI at 18-mth high in Aug-CIPS

LONDON, Sept 2 - British construction activity fell at its slowest pace in 18 months in August, a survey showed on Wednesday, boosted by a slower decline in housebuilding activity and firms' optimism about the future.

The Chartered Institute of Purchasing and Supply/Markit construction PMI index rose to 47.7 in August from 47.0 in July.

"The weaker decline of the residential and commercial construction sectors was particularly encouraging," said Markit economist Sarah Ledger.

"New orders continued to fall marginally month-on-month, indicative of a slow recovery in the sector. However, the depth of the downturn was highlighted through maintained heavy job losses," she said.

The construction industry has been particularly hard hit by the economic downturn, because banks' reluctance to lend has choked demand for new housing and brought many commercial projects to a standstill.

Still, the survey suggested conditions were continuing to stabilise and firms were hopeful orders would pick up in the coming year.

"While the purchasing managers' survey still points to contracting activity in the sector, it nevertheless indicates that construction output should be less of a drag on the overall economy in the third quarter," said Howard Archer, UK economist at IHS Global Insight.

"Even so, serious concerns remain about the outlook for the construction sector, with the housing market and commercial property sectors still facing significant problems," he added. (Reporting by Fiona Shaikh; editing by Chris Pizzey) ((UK Economics Desk; Tel: +44 207 542 2774))

thriftybabe

"activity fell at its slowest pace" When you get near the bottom it is bound to slow down! Everyone we know has a bit of work here and there but nothing lasting any amount of time. I think Winter is going to be really hard in Construction. There are not many jobs starting and Jan - April is generally very slow anyway. Yikes!

purch

British construction activity fell at its slowest pace in 18 months in August, a survey showed on Wednesday, boosted by a slower decline in housebuilding activity

Funny how 'Falling at a slower pace' will often be construed as better news than 'Rising at a slower pace' would be :rolleyes:

mbga9pgf

So, recovery built on hope rather than actual economic activity. Im not so sure.

vivatifosi

Let's also not forget that last recession, it took until 2001 for the number of people employed in the sector to reach its previous highs (Experian).

mbga9pgf

Yep. And its going to be a long old while yet before unemployment bottoms out. The difference with the last recession, can anyone see any furtive signs of future growth with increased taxes and lower lending? I cant, not for the forseeable at least.

1984ReturnsForReal_2

Thank god* for 2012 otherwise it would be slowing to a grinding halt!








(*or Seb Coe)