UK construction PMI hits seven-month low in November

The UK construction sector hit a seven-month low in November, figures released on Wednesday showed.

Markit’s construction purchasing managers’ index declined from 58.8 in October to 55.3 this month, comfortably below the 58.5 reading analysts had expected.

Meanwhile, a gauge of homebuilding growth fell from 59.6 last month to 55.2, the weakest reading since June 2013.

The report found that firms remained “highly upbeat” over the business outlook, despite a contraction in new construction business and employment, with 55% of survey respondents expecting output to increase in the medium-term future.

“The latest results suggest that construction companies have become a little more cautious towards year-end,” Markit’s economist Tim Moore.

“However, a healthy flow of new tenders from public and private sector clients is expected to provide a tailwind to growth heading into 2016.”