U.K. Homebuilding Shrinks for First Time in More Than a Year

(Bloomberg) -- U.K. homebuilding activity shrank in January, ending a 16-month expansion, according to a report on Friday.

IHS Markit’s monthly index fell to 48.1, the lowest since just after the Brexit vote in 2016 and below the key 50 line that separates expansion from contraction. The reading was down from 55.3 in December.

Housing had been the main driver of growth in recent months, and its slump dragged the overall construction Purchasing Managers Index to 50.2 -- a four-month low -- from 52.2. IHS Markit said new construction orders fell slightly for the first time in four months. Survey respondents linked this to “worries fueled by general political and economic uncertainty,” it said.

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