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UK Construction Contracts Most Since 2009

The UK construction sector contracted the most in more than a decade in June, survey data from IHS Markit showed Tuesday.

The IHS Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index fell unexpectedly to 43.1 in June from 48.6 in May. The reading was forecast to rise to 49.2.

The score has been below 50 no-change mark for the fourth time in the last five months. The latest reading signaled the steepest reduction in overall construction output since April 2009.

All three broad categories of activity logged a decline in output. The fall in house building was the largest reported for three years. Commercial work fell for the sixth consecutive month in June. Civil engineering activity also declined at a sharp pace in June.

The survey showed that incoming new business declined at the fastest pace for just over 10 years.

Demand for construction staff was relatively resilient in June as there was only a slight fall in workforce numbers. Input cost inflation was the slowest since May 2016.

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