UK construction sector loses momentum in April, output growth weakest in three years

Latest reading from Markit/CIPS UK Construction Purchasing Managers’ Index fell from 54.2 in March, registering at 52.0 in April. April data signalled a further loss of momentum across the UK construction sector, with new order volumes stagnating and overall business activity expanding at its slowest pace since June 2013.

Construction firms signalled a renewed decline in confidence about the year-ahead business outlook in April. The latest reading pointed to the weakest degree of positive sentiment for almost three years. Staffing levels continued to increase across the construction sector during April, the latest increase in payroll numbers was only modest and some firms commented on more cautious hiring policies in response to softer demand patterns.

“Although UK construction grew marginally in April, clouds of uncertainty are hovering overhead, depressing the industry’s outlook. Business activity expanded at its weakest pace since June 2013, clearly pointing to a loss of momentum in the sector." said David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply.