(Bloomberg) -- The contraction in the U.K. construction industry deepened in September as the commercial sector became a “notable casualty” of Brexit.
The sector shrank for a fifth straight month as building activity plunged and new orders saw a “historically steep drop.” Firms trimmed employment at the fastest pace since 2010, while optimism remained subdued.
“The U.K. construction sector remained mired in a downturn at the end of the third quarter,” said Joe Hayes, an economist at IHS Markit. “Firms are buffeted by client hesitancy, heightened Brexit uncertainty and a weak outlook for the U.K. economy.”
Markit's activity index for the industry fell to 43.3 last month, down from 45 in August and approaching the lowest level since the financial crisis. The measure has been below the 50 level that indicates expansion since May.
--With assistance from Harumi Ichikura.
To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net
To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Brian Swint
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