The second sharpest fall in new business since April 2009 had a huge impact on September’s PMI, which saw the second consecutive month of contraction for the industry.
The current stretch of falling new orders is now the longest seen for three years, reflecting both the shrinking underlying demand and the delays in spending from the public and private sector sources.
Increased costs for fuel and a range of raw materials also accelerated price inflation accelerated for the third month running.
It’s hard to find a positive in these stats BUT staffing levels surprisingly increased to 52.2 from 50.1!
Overall, the residential sub-sector was the worst performing - falling to 45.3 from 46.6. Commercial activity also sunk further into contraction, however, after 4 months of doom and gloom, we finally saw a return to growth in the civils sector - up to 52.5 from 47.3.
Despite the latest government attempts to boost the sector, Tim Moore, the senior economist at Markit, said the survey suggested the sector's weakness was likely to continue for the remainder of 2012.