Stock Groups

Omicron slows growth of UK construction in December

[ad_1]

© Reuters. FILE PHOTO – Workers standing on scaffolding in a London residential building, Britain, February 7, 2016. REUTERS/Toby Melville

LONDON, (Reuters) – The Omicron coronavirus caused a slowdown in growth in the UK’s construction industry in December. A survey was conducted on Friday.

CIPS UK Construction Purchasing Managements’ Index (PMI), which was 55.5 in November but fell to 54.3 in December, reached a 3-month low. An economist poll by Reuters had predicted a reading 54.0.

The decline in civil engineering activity was the first since February, while the growth of the commercial sector slows. The survey revealed that only housebuilding experienced a rebound in December.

Numerous survey respondents mentioned disruptions resulting from COVID-19 instances, which reached new heights last month due to the rapid spread of Omicron.

Tim Moore from IHS Markit, director of IHS Markit, said that UK construction companies finished last year in a weaker position because renewed pandemic restrictions slowed the recovery, particularly in civil engineering.

The construction survey, like the PMIs earlier in the week for manufacturing and service sectors, showed a decrease in the high cost pressures that companies face.

Survey’s gauge for supplier delivery times rose at its highest level since Nov 2020. It indicates that there has been less disruption in supply chains.

Moore stated that the worst period of delays from suppliers appears to be over as construction materials and products continued to improve in December.

PMI all-sector, which includes the readings from construction, manufacturing, and services over the week, dropped to 53.6 in December, from 57.4 November. This is its lowest level since February. Its drop is largely due to Omicron spreading to consumers.

Disclaimer: Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media does not accept any liability for trade losses caused by the data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information, including buy/sell signal data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.

[ad_2]