The U.K. construction sector shrank unexpectedly in August on another reduction in production and new orders, survey results from Markit Economics showed Tuesday.
The Markit/Chartered Institute of Purchasing & Supply Construction Purchasing Managers' Index dropped to 49 from 50.9 in July. The reading dropped below the no-change mark and logged the second-lowest reading since February 2010.
Economists had forecast the index to fall to 50 in August.
Residential building activity was the worst performing category of construction output. Civil engineering as well as commercial construction activity also declined from the prior month.
Respondents attributed the drop in construction output to ongoing weak demand. Reduced workloads resulted in a further solid decline in purchasing activity. Construction companies were least optimistic about business outlook since October 2011.
by RTT Staff Writer
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