Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

U.K. Construction Slows to Six-Month Low as Flood Work Cools

A Crane Stands by Apartments Under Construction in London
Markit’s construction measure has slowed for the past three months, though it remains above the 50 level that indicates expansion and reached 64.6 in January, the highest since 2007. Photographer: Simon Dawson/Bloomberg

May 2 (Bloomberg) -- U.K. construction growth slowed to the weakest pace in six months in April as some civil engineering companies reported less work related to flood-relief efforts.

A Purchasing Managers’ Index declined to 60.8 from 62.5 in March, Markit Economics said today in London. The median forecast of 17 economists in a Bloomberg News survey was for a dip to 62.2. Britain had its wettest winter for almost 250 years with some parts of England experiencing floods that bolstered rebuilding and repair work earlier this year.

Markit’s construction measure has slowed for the past three months, though it remains above the 50 level that indicates expansion and reached 64.6 in January, the highest since 2007. A gauge of new orders rose to 60.8 last month from 58.4.

“Construction growth has started to moderate from the rapid pace seen over the winter, but strong rises in new work and payroll numbers provide ample optimism that output will expand strongly over the course of 2014,” Tim Moore, senior economist at Markit, said in a statement.

While today’s report shows construction output may be easing, factory data yesterday added to evidence that the U.K. recovery is broadening. The housing market continues to strengthen, with Nationwide Building Society reporting this week that property prices climbed the most since 2007 last month.

“Residential construction was the best performing broad area of activity and the rate of expansion in April remained one of the fastest seen over the past 10 years,” Markit said.

To contact the reporter on this story: Scott Hamilton in London at shamilton8@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net Emma Charlton

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.