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UK construction sector at 11-month low in July, IHS/CIPS survey shows

U.K. construction sector growth eased for the second month running in July, purchasing managers' data from IHS Markit/CIPS showed.

Construction PMI, after seasonal adjustments, posted an 11-month low of 51.9 in the month from 54.8 in June and was lower than the long-run survey average of 54.5.

Commercial work tumbled at the fastest rate in 12 months, new orders declined for the first time in 11 months and job creation slipped. Intense supply chain pressures continued in July and input prices increased at one of the sharpest rates since the first half of 2011, the report said.

Firms' optimism about the construction sector's growth prospects was at the lowest level since July 2016.

"Worries about the economic outlook and heightened political uncertainty were key factors contributing to subdued demand," Tim Moore, associate director at IHS Markit and the author of the report, said.

"A challenging start to quarter three and there are possible roadblocks ahead for the sector in the rest of 2017, with longer lead times and suppliers struggling with stock levels, which adds insult to injury," said Duncan Brock, director of customer relationships at the Chartered Institute of Procurement & Supply.

The signs of slowing construction growth came after the IHS Markit/CIPS manufacturing PMI for July rose to 55.1 from the revised three-month low of 54.2 in June.