UK construction PMI stalls rebound in June, misses expectations

The construction sector activity in the UK economy stalled its recovery mode in June and came below markets expectations, a fresh report from Markit Economics showed on Tuesday.

The final Purchasing Managers' Index (PMI) in the UK dropped to 54.8 points in June, after having booked 56.0 points in May. Markets had predicted a 55.0 reading.

Key Points:

Business activity growth slows from May’s 17- month high

Weaker rises in new orders and employment

Business optimism eases to its lowest so far in 2017

Tim Moore, Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI®, noted: “The construction sector experienced a growth slowdown in June, largely reflecting weaker rises in commercial building and civil engineering activity. Residential construction work continued to increase at one of the fastest rates since the end of 2015.”