Investing.com - Activity in the UK construction sector slowed down last month, according to a closely watched business survey released on Tuesday.
Research firm IHS Markit said its construction purchasing managers’ index fell to 52.9 in August, compared to forecasts for a reading of 54.9.
The prior month’s reading was 55.8.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
IHS Markit indicated that there was a modest overall rise in construction activity in August, although output growth eased to a three-month low.
The research firm highlighted that suppliers’ delivery times lengthened to the greatest extent since March 2015, while input cost inflation eased to a 25-month low.
“There are some encouraging takeaways from the latest survey, especially the resilient degree of new business growth in August and a strong upturn in staff recruitment,” IHS Markit associate director Tim Moore commented in the report.
He noted that survey respondents were confident about achieving organic growth at their businesses in the next 12 months.
“The degree of optimism reported in August remained constrained by external factors, including domestic political uncertainty, stretched supply chains and shortages of suitably skilled labor,” Moore added.