REPEAT: UK Construct Firms Downbeat On 2018; Dec Growth Eases

Repeats Story Initially Transmitted at 10:08 GMT Jan 3/05:08 EST Jan 3

-CIPS/IHS Markit UK Construction PMI 52.2 in Dec Vs 53.1 Nov

By David Robinson

     LONDON (MNI) - The UK construction sector, like manufacturing, saw activity

growth ease in December, the latest IHS Markit/CIPS survey showed.

     The UK Construction Purchasing Managers' Index (PMI) fell to 52.2 in

December, down from 53.1 in November. This was the third consecutive monthly

reading above the 50.0 no-change threshold, but the data suggested that the pace

of expansion was moderate and that the sector will only make a modest

contribution to Q4 growth.

     CIPS reported that while there was a strong rise in residential building,

work declined in the commercial sector and civil engineering output fell.

     There was some evidence that activity may pick-up in the new year, with

anecdotal reports of an increase in work enquiries and a gradual rise in

clients' commitments to new work. Construction sector employment rose in

December.

     The outlook for 2018 as a whole, however, was downbeat. In all 37% of the

CIPS survey panel forecast a rise in construction this year and 11% anticipate a

fall, with the net 26% balance anticipating year ahead growth the weakest since

mid-2013.

     This construction figures followed Tuesday's data which revealed that the

headline December CIPS/Markit manufacturing PMI fell to 56.3 from 58.2, with

manufacturing activity growth easing across the board and the employment index

falling to its lowest level since June.

     "The UK construction sector achieved a moderate expansion of business

activity at the end of 2017, although the recovery remained uneven and slowed

overall since November," Tim Moore, Associate Director at IHS Markit, said.

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com