(Bloomberg) --
U.K. construction extended its longest contraction since 2013 in October as domestic political turmoil and a weak economic backdrop weighed on demand.
IHS Markit's index of building activity rose to 44.2, from 43.3 in September, but remained below the 50 threshold that indicates expansion for a sixth month.
Civil engineering led the drop, with residential home building also losing momentum. Companies said that clients continued to defer decisions on new projects and in some cases, survey respondents noted that unusually wet weather in October had acted as an additional headwind to construction output.
“U.K. construction companies experienced a downturn in business performance during October as political uncertainty and subdued economic conditions again combined to hold back sales,” said Tim Moore, an analyst at Markit. “There are clear signs that construction firms are positioning for an extended soft patch for project starts.”
©2019 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
