British construction companies report sharpest fall in building activity

The UK’s construction companies in September reported the sharpest fall in activity since just after June 2016’s Brexit vote, as clients put projects on hold due to uncertainty over the economy.

Although construction makes up just 6% of the UK economy, the survey suggested it was likely to drag on official third-quarter growth figures, just as the Bank of England gets ready to raise interest rates.

The IHS Markit-CIPS construction purchasing managers’ index (PMI) sank to 48.1 in September from August’s reading of 51.1, its lowest since July 2016. Anything below 50 is considered a contraction.