Activity in the construction sector plummeted in March as snowstorms put a sudden brake on projects.
Economists were surprised at the fall in the purchasing managers’ index, from a reading of 51.4 in February to 47 in March. Any reading below 50 represents contraction. They had expected a positive measure of 50.8.
The reading was the weakest since July 2016, the month after the Brexit vote, and showed delivery times growing longer and output, orders, sales and demand all falling.
The construction sector makes up 7% of the economy, but developers’ investment decisions are seen as an indicator of how optimistic businesses are about the country’s future.
The Telegraph added that the poor month follows the collapse of Carillion, Britain’s second-biggest construction company, which had a knock on effect on subcontractors and on civil building work.
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