- Markit
The UK's construction output rose at the slowest pace in nearly three years in April, suggesting the economy was losing steam before June's referendum on whether to leave the European Union. The Markit/CIPS PMI gauge of business activity within Britain's construction sector fell to 52 last month from 54.2 in March, and considerably below economists' median forecast of 54.Even though the headline PMI figure remained above the key 50-mark threshold for the 36th straight month in April, its level has weakened notably from post-crisis highs seen in 2014. Both business activity and new work declined in April, and subdued demand conditions led to employment levels also falling to a three-year low.
Britain's economy slowed in the first quarter as the global economy weakened. Recent data have suggested it is losing more steam as the June 23 EU vote looms. The UK manufacturing sector encountered a surprise contraction in April that reflected in the PMI, as it entered negative territory for the first time in four years, plummeting under the 50 point mark to show 49.2 points. Market participants will now be closely watching the PMI survey on the services sector due later in the day, which is expected to show that activity declined slightly to 53.5 at the beginning of the second quarter, following a dramatic decrease to a three-year low overall in the first quarter of this year.
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