UK construction growth unexpectedly eases in July

UK construction growth output slowed in July amid a weaker rise in housebuilding and civil engineering.

The Markit/CIPS purchasing managers’ index came in at 57.1 in July, easing a little from June’s four-month high of 58.1 and below expectations for a reading of 58.4.

The data pointed to a slight overall loss of momentum across the UK construction sector, with business activity and incoming new work both expanding at slower rates than in the previous month.

Tim Moore, senior economist at Markit, said: “July’s growth slowdown is the first for three months and perhaps a sign that the post-election impact on construction confidence has started to diminish. Reflecting this, UK construction firms’ business activity expectations moderated from June’s 11- year peak but remain strong overall.”