Business

UK construction sees slower growth

Construction workers
Image caption Business confidence in the construction sector has fallen to a six-month low

Growth in the UK's construction industry eased in June, thanks to a slower expansion of new orders, a survey has shown.

The Markit/Cips construction purchasing managers' index (PMI) dipped to 53.6 in June, from 54.0 in May. A figure above 50 indicates expansion.

Markit also said June had seen the sharpest job cuts in the sector for five months.

Last week, Markit data showed growth in manufacturing was stalling.

The manufacturing PMI fell to from 52.0 in May to 51.3 in June, its lowest rate for 21 months.

Low confidence

Markit said that while remaining optimistic, the degree of positive sentiment at construction companies regarding future activity levels fell sharply in June.

"The worry is that the level of business confidence has fallen to a six-month low in the sector, which suggests that companies are expecting growth to weaken over the next 12 months," said Markit economist Sarah Bingham.

"That is perhaps not altogether surprising, given a marked easing in the rate of expansion of new business inflows in June."

Related Internet links

The BBC is not responsible for the content of external Internet sites