Wainwright Marks Management - UK Construction Output Plummets
July 19, 2019 (PRLEAP.COM) Business NewsJuly 19, 2019 - Growing concerns about the country's political and economic prospects in June sent the UK's construction sector into its deepest decline since the financial crisis a decade ago.
The IHS Markit/CIPS UK Construction Purchasing Managers' Index (PMI) plummeted to 43.1 in May falling far short of the 48.6 predicted by Wainwright Marks Management economists and well below the 50.0 mark that separates expansion from contraction.
Wainwright Marks Management economists say the dramatic contraction could be attributed to risk aversion as many struggle to anticipate the outcome of Brexit and the implications for economic outlook.
Economists at Wainwright Marks Management say that although purchasing managers' surveys can sometimes overstate economic developments, there is no comforting news in the recent data.
Construction contributes only 6 percent of the UK's GDP but data also revealed that the larger manufacturing sector had experienced a significant decline in June.
Wainwright Marks Management economists say the PMI for services will likely show very little, if any, growth in that sector which makes up almost 80 percent of the UK economy. In light of the recent data, it is likely that the UK's economy shrank in the period from April to June.