U.K. Construction Activity Plunges as Lockdown Shuts Sites

(Bloomberg) --

The U.K. construction industry shrank at its fastest pace in more than two decades in April as the coronavirus lockdown halted projects.

IHS Markit said its gauge of activity fell to 8.2 last month from 39.3 in March, the lowest since data were first collected in 1997. It’s the first time the index has been in single digits, with the previous low standing at 27.8 in February 2009 in the wake of the global financial crisis.

“Widespread site closures and business shutdowns across the supply chain meant that vast swathes of the construction sector halted all activity,” said Tim Moore, economics director at IHS Markit.“Construction companies widely commented on worries about cash flow, operating costs and severely reduced productivity, as well as a slump in demand.”

The data follow grim surveys on services and manufacturing, and indicate that Britain could be facing its sharpest ever economic collapse. Bank of England officials are meeting this week to discuss if they need to do more to counter the downturn, and will announce their policy decision on Thursday.

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