Data has been published which shows that August has seen the lowest upturn in the UK construction industry for the last 12 months. The survey data that has been collected through the IHS Markit/ CIPS UK Construction Purchasing Managers Index has shown that during August there was a sowing in the level of construction work. This reduced level of construction work has been noted as a key source of weakness in the UK industry and has had an impact on the robust growth seen in the residential building sector.

The research that has been collected has also shown signs of a so called ‘soft patch’ approaching. The data has shown new business volumes decreasing for a second month in a row. Those that responded to the survey believed that the lower demand has been caused by a reduction in business investment and an increased level of economic uncertainty.

Because the lower levels of investment and more uncertainty, construction firms have grown cautious and have hired fewer staff. This has led to employment numbers increasing at their slowest rate since July 2016.

Despite the gloomy outlook, the Index remained above the 50.0 no-change level, reading 51.1 in August, which is down from 51.9 in July. the slowdown has also been connected to a lack of new orders lined up to replace completed projects.

Residential building went against the downward trend for August, with housing activity seen to be rising at a significant pace throughout August. The Civil Engineering sector has record results that are almost stagnant, and commercial work has seen the fastest drop since July 2016. The survey has illustrated that concerns about the economic outlook in the UK has had a significant impact on the commercial development sector, leading to more delays in decisions or projects that have been scaled down.