LONDON (dpa-AFX) - The UK construction sector shrank at a slower pace in January as receding political uncertainty boosted client demand, survey data from IHS Markit showed Tuesday.
The IHS Markit/Chartered Institute of Procurement & Supply construction Purchasing Managers' Index rose to 48.4 in January from 44.4 in December.
This was the slowest fall in eight months and above the forecast of 47.1. Nonetheless, the score below 50 signaled contraction.
House building was the best performing broad area of construction activity, with output falling slightly. Residential work dropped at the slowest pace since May 2019.
At the same time, commercial activity decreased for the thirteenth consecutive month.
'So, though this rebound is a welcome sign, as with all sudden improvements, the danger remains the sector could easily recoil and shrink again,' Duncan Brock, group director at the CIPS, said.
'The domestic political situation and the UK's attempt to find its place in the world remains littered with obstacles so businesses could find themselves on this see-saw of good and bad news for some time yet,' Brock added.
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