From the TUC

Construction takes another hit

05 Jan 2011, by in Economics

The roller coaster of economic data continued today with the Construction Purchasing Managers’ Index. Yesterday’s Manufacturing PMI was very encouraging, showing record growth and strong employment performance, but the Construction figures are rather disappointing. The overall Index fell below 50, indicating that output in the sector fell in December. Markit commented that this was probably due to the weather, but they also added that employment fell “sharply” and confidence about future prospects was “relatively weak.”

These results have a wider significance because last year’s recovery depended heavily on strong growth in construction. Markit’s summary of the views of the managers they surveyed was that they were reasonably optimistic about economic prospects but

the degree of positive sentiment remained relatively subdued, as concerns over cuts in public spending persisted.

The results led to a drop in sterling, though they were hardly a surprise. The key figures will be tommorrow’s service sector PMI, as this represents over half the economy.

3 Responses to Construction takes another hit

  1. Tweets that mention Construction takes another hit | ToUChstone blog: A public policy blog from the TUC — Topsy.com
    Jan 5th 2011, 4:04 pm

    […] This post was mentioned on Twitter by ToUChstone blog, Michael Ellis. Michael Ellis said: Manufacturing improving but construction subdued due to public sector cuts – http://j.mp/hDQUhv […]

  2. moby
    Jan 6th 2011, 11:27 am

    It seems that construction is taking a big hit worldwide, though I believe Dubai and probably Spain have been severely hit.

  3. mis sold ppi
    Jan 13th 2011, 12:27 pm

    I cant imagine any construction being funded at the moment with the lack of finance available.