2 Mar 2016
UK construction PMI declined in February - TDS
Research Team at TDS, notes that as they expected (and against consensus of an increase), the UK construction PMI declined in February, losing nearly a point and landing at 54.2.
Key Quotes
“Underlying details of the report were weak, with private sector output moderating, residential building decelerating again (to the slowest pace since Jan 2013), while commercial building moderated as well to similar levels it saw heading into the May 2015 election. The report also showed more uncertainty weighing on new business and job growth.
Overall, there is still plenty of scope for moderation here given how strong the sector has been, and there are anecdotal reports of softening in the London market, especially for multiples, which have been supported by foreigners who now have less cash and worsening FX to deal with.”
Key Quotes
“Underlying details of the report were weak, with private sector output moderating, residential building decelerating again (to the slowest pace since Jan 2013), while commercial building moderated as well to similar levels it saw heading into the May 2015 election. The report also showed more uncertainty weighing on new business and job growth.
Overall, there is still plenty of scope for moderation here given how strong the sector has been, and there are anecdotal reports of softening in the London market, especially for multiples, which have been supported by foreigners who now have less cash and worsening FX to deal with.”