2018.06.0407:39:00UTC+00U.K. Construction Sector Retains Modest Recovery

Britain's construction industry held on to its modest recuperation from a hit during the snowy beginning to the year, but concerns about Brexit are causing some projects to be stalled, according to a survey released on Monday.

The IHS/CIPS UK Construction Purchasing Managers' Index clocked in at 52.5, unchanged from April's modest growth rate following a significant contraction in March.

The figures were higher than the estimated 51.9 by economists in a Reuters poll. Construction represents only around 6 percent of the UK's economic output.

New order books contracted for the fourth consecutive time in five months with firms citing the political and economic uncertainty before Britain's departure from the European Union in March 2019. Optimism regarding growth prospects declined to a seven-month low. Another factor causing concerns for builders are the higher fuel and steel prices that drove up input costs.

A PMI survey including Britain's manufacturers, which was released on Friday, indicated growth in the factory sector accelerated in May but had signs of weakness in the near future.

The Bank of England is searching for indications that the Britain's economic growth standstill in early 2018 was only short-lived before it reconsiders its plan to gradually hike interest rates.