The UK’s construction industry slowed down in October but was less affected than most of the pandemic-plagued economy supported by a cheery housing sector, according to a recent business index.
The poll by IHS Markit/CIPS Purchasing Managers shows the construction industry dipped 53.1 in October. This performance marks a jump from September’s 56.8, and a more significant drop than the 55.0 cited by economist predictions in a Reuters poll, and the worst as of May.
Nevertheless, unlike the most recent stats for other service categories, the performance stayed well beyond the 50 mark.
“The UK’s construction sector remained a lucrative sector in an otherwise slow month for the nation throughout October,” said Tim Moore, an economist at IHS Markit.
And as other sectors suffered under a challenging economy, building and construction thrived, showing an increase in demand since lockdown restrictions eased fueled by a temporary reduction in property taxes, which has seen banks accept mortgage applications as of 2007.
The announcement saw new orders in the industry go up an impressive 6 percent of the United Kingdom’s economy, increasing the most in half-a-decade.
Conditions were also fairer for a sector after being excluded from the restrictions imposed throughout England. However, last month companies were worried about the possible effects of demand increase from Coronavirus cases.
“Respondents from the IHS Markit survey showed concerns of an unpredictable economic future and the steadiness of the current recovery as demands that were halted begin to resume,” Moore said.
Meanwhile, the civil engineering industry continues to announce sharp drops in activity levels as COVID disrupted commercial activity.
The Takeaway
The UK’s construction industry slowed down in October but was less affected than most of the pandemic-plagued economy supported by a cheery housing sector, according to the latest business index.
Conditions were also fairer for a sector that’s been excluded from the restrictions imposed throughout England, allowing it to snowball with little to no friction at a time when most industries had hit rock bottom.
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