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UK construction hit by significant drop in new orders

UK construction hit by significant drop in new orders

U.K. construction sector was hit by a tremendous fall in the new orders, adding to growth concerns, the Purchasing Managers’ Index data released on Tuesday showed.

Construction PMI was dragged down to 45.0 in August from 45.3 in July, missing forecasts of 46.7, as new orders plunged to the lowest level since March 2009.

“Domestic political uncertainty” is hurting the construction sector......and there could be worse to come, said Tim Moore, economics associate director at IHS Markit.

Data released yesterday signaled a contraction of 47.4 in manufacturing activity last month, the lowest in seven years, from a prior of 48.0 in July, ahead of the services data due on Wednesday.  

As of 09:07 GMT, the pound traded lower at $1.1992 after hitting a fresh record low at $1.1958, which is the lowest since the 2016 ‘flash crash’ in the aftermath of the June Brexit referendum.

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