U.K. construction sector was hit by a tremendous fall in new orders in September, adding to growth concerns, the Purchasing Managers’ Index data released on Wednesday showed.
Construction PMI was dragged down to 43.3 in September, the second-fastest rate since April 2009, from 45.0 in August, missing forecasts of 45.0.
“A historically steep drop in new orders was also registered, while firms trimmed employment at the fastest rate since the end of 2010 due to unfavourable demand, client hesitancy and low confidence,” said IHS Markit/CIPS.
Joe Hayes, economist at IHS Markit has blamed the heightened Brexit uncertainty and a weak outlook for the UK economy.
As of 09:00 GMT, the pound widened its losses to
$1.2230 due to concerns that Boris Johnson’s proposal to replace the Irish
border “backstop” will not seal a Brexit pact with the EU.