Builders hammered

New work shortfall batters industry

BRITAIN’S building industry went into reverse last month.

Output shrank for the first time in more than a year after a sharp slowdown in new work.

The drop was linked to “fragile confidence” and “a subdued risk appetite”, said the report from number crunchers Markit and the Chartered Institute of Procurement and Supply.

The worst hit area was the commercial building sector – from office blocks to stores and factories – which suffered the second-sharpest

Experts warn it could hit the wider economy

decline since February, 2013. Big civil engineering projects also saw a go-slow. House building was the only area that grew last month. The survey uses an index to measure output, with anything above 50 showing growth.

The index fell from 51.1 in August to 48.1 last month.

Report author Tim Moore said: “A shortfall of new work to replace completed projects has started to weigh heavily on the UK construction sector.

“Aside from the soft patch linked to spending delays around the EU referendum, construction companies have now experienced their longest period of falling workloads since early 2013.”

Howard Archer, chief economic adviser for the consultants the EY Item Club, said the construction industry slowdown could dent the wider economy.

The report came 24 hours after separate research showed manufacturing output slipped last month.

Chris Beauchamp, analyst at financial spread betting firm IG, said it made the chance of the Bank of England raising its base rate next month less likely.