The IHS Markit UK Construction PMI fell to 44.4 in December of 2019 from 45.3 in November, well below market expectations of 45.9. The reading pointed to the 8th straight month of falling construction, amid political uncertainty and subdued client demand ahead of the general election. Yet, in 2019, only April and January saw small rises in construction, making the current period of falling business activity across the construction sector the longest recorded by the survey for almost a decade. Civil engineering was the worst-performing category, with activity falling at the fastest pace since March 2009. On the other hand, job shedding softened and input cost inflation was the lowest since February of 2010. Finally, business confidence rebounded to a nine-month high, as greater clarity in relation to Brexit had the potential to boost order books in 2020. Construction Pmi in the United Kingdom averaged 51.50 points from 2008 until 2019, reaching an all time high of 64.60 points in January of 2014 and a record low of 27.80 points in February of 2009. source: Markit Economics
Construction Pmi in the United Kingdom is expected to be 49.10 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Construction Pmi in the United Kingdom to stand at 52.10 in 12 months time. In the long-term, the United Kingdom Construction Pmi is projected to trend around 53.60 points in 2020, according to our econometric models.