A slowdown in residential construction led to a weakening of UK construction sector growth for the third successive month, according to a new Markit/Chartered Institute of Purchasing & Supply report.
Jobs continued to be cut, but confidence improved, despite concerns about public sector spending cuts.
The expansion of the UK construction sector posted 52.1 on the Markit/CIPS construction purchasing managers’ index in August, down from a reading of 54.1 during July.
“Data indicates that the UK construction sector continued to expand in August,” said Sarah Ledger, Markit economist.
“However, overall activity growth lost further momentum, with the headline index over six points lower than May’s recent high, led by a marked slowdown in residential construction growth.”
CIPS chief executive David Noble said though the figures were disappointing, the overall sector was still growing.
“The housing market is key to recovery in the longer term but now appears to be in a transition phase.”
