British construction indices point to lower growth

British construction indices are dipping, fuelling fears of a slowdown in GDP growth, according to World First.

Jeremy Cook, chief economist, notes the British construction purchasing managers’ index (PMI) is now 54.1, against an expected figure of 58.

“Given that the preliminary GDP reading for the second quarter was fuelled by an expansion of construction spending, this PMI shows that the growth figures for the third quarter will not be so strong,” he says. (article continues below)

The data follows a slowdown in a key American manufacturing index and the first fall in Chinese manufacturing PMIs in the last 17 months.