Monday, 7 January 2013

UK Construction PMI - December 2012

December’s PMI dropped to a lower than expected 48.7, down from 49.3 in November.

The latest figures raise some alarm bells as not only do they show the fastest rate of contraction since June 2012, contraction in new orders was the fastest since April 2009!

Of the three general sub-sectors, housing activity was by far the weakest performer. Residential construction output has now fallen for 7 consecutive months and saw its fastest drop since 2010 last month. Commercial activity also contracted for the 5th month in a row, leaving only civil engineering to buck the trend by posting an expansion.

To sum it up, December rounded off a miserable year for the construction industry and it’s no surprise that confidence in the sector is now lower than the 4 year post-recession average. 

Here’s to a better 2013!