(RTTNews) - The UK CIPS/Markit Purchasing Managers’ Index or PMI for the construction sector dropped to a seasonally adjusted 44.5 in June from 45.9 in May. This was the sixteenth month of contraction in the construction sector. Economists had expected the reading to rise to 46.

A reading above 50 indicates expansion in the sector, while a reading below 50 signals a contraction.

In June, constructors were buying fewer raw materials due to lack of new orders, but the rate of decline in new orders were modest. At the same time, jobs continued to be shed heavily.

David Noble, Chief Executive Officer of the CIPS, said, “against the backdrop of difficult market conditions, the UK construction sector is on a knife edge. After the improvements seen in April and May, the sector has retracted as firms battle to consolidate their position in the tough market.”

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

Posted in Categories: Economy, Releases, Stocks, UK.

Subscribe by RSS Subscribe by Email