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British construction activity plunges in May: survey

Source: Xinhua| 2019-06-04 20:13:38|Editor: Wu Qin
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LONDON, June 4 (Xinhua) -- British construction activity plunged in May, with the sharpest drop in construction output since March 2018, according to a survey released Tuesday by IHS Markit/CIPS, a London-based global information provider.

The Markit/CIPS Construction Total Activity Index for May fell to 48.6, down from 50.5 in April, below the neutral 50.0 benchmark for the third time in the past four months.

Meanwhile, the commercial building construction activity was the weakest segment in May, with output hitting the weakest point since September 2017.

Tim Moore, associate director at IHS Markit, said: "May data reveals another setback for the UK construction sector as output and new orders both declined to the greatest extent since the first quarter of 2018."

"Survey respondents attributed lower workloads to ongoing political and economic uncertainty, which has led to widespread delays with spending decisions and encouraged risk aversion among clients," Moore said.

Duncan Brock, group director at the Chartered Institute of Procurement & Supply, said: "A fragile dreariness descended on the sector this month with lower workloads leading to the fastest decline in purchasing of construction materials since September 2017."

"With the continuing uncertainty around Brexit and instabilities in the UK economy, client indecision affected new orders which fell at their fastest since March 2018 and particularly affected commercial activity," Brock added.

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