UK construction output lower than expected


Construction became the second major UK industry to show a lower than expected output in June as Markit’s purchasing managers’ index (PMI) dropped to 54.8 over the month.

The PMI was recorded at 56 during May, which proved itself to become a 17-month high. The recorded value of 54.8 for June is however just below analyst expectations of 55.

April saw strongest growth in 2017 for British construction

For the PMI, any figure below the value of 50 shows a contraction in the sector.

The only other UK major industry that under-delivered was the country’s manufacturing sector. Figures published earlier this week show that it missed its June expectations by two points.

The figures suggest that growth slowed in the housing, commercial and infrastructure sectors in the UK over June, whilst the rise in housing activity still remained strong.

The report suggested that “heightened political and economic uncertainty” created a new risk aversion among clients, whilst also saying that optimism in firms has reached its lowest level since December.

Small construction firms shake off Brexit concerns with confidence

Tim Moore, a senior economist at IHS Markit, commented:

“Fragile business sentiment led to delayed decision-making on large projects and greater concern about the outlook for workloads during the next 12 months.”

“While construction firms remain upbeat overall about their near-term growth prospects, the degree of confidence fell to its lowest so far this year.”

The sector seems to continue its challenge with uncertainty following the EU referendum just over one year ago. One of the biggest worries remains how the country’s exit from the EU will affect the construction sector as it heavily relies on European labour.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

UK construction output lower than expected

UK construction output lower than expected


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.