Roundup: British construction registers first decline since 2013

New construction volumes in Britain declined for the first time since April 2013, as concern about a June 23 referendum on whether Britain should remain a member of the European Union(EU) prompted companies to put off new projects, data from Markit showed on Thursday.

Survey respondents noted a general slowdown in market conditions and delays to client decision-making ahead of the EU referendum.

British construction purchasing managers' index (PMI) declined to 51.2 in May, down from 52.0 in April, said the London-based survey compiler.

All three broad areas of construction activity were stuck in a low gear during May.

Residential building work increased at one of the weakest rates seen since early 2013, while growth of commercial activity was the slowest for nearly three years. Civil engineering stagnated in May, which made it the worst performing sub-category of activity for the second month running.

"The construction sector is in the doldrums, confirming that the recovery is faring badly under the strain of Brexit risk. A majority of firms reported falling orders for the first time since April 2013," said Samuel Tombs, chief UK economist in Pantheon Macroeconomics.

"Even after a 'Bremain' vote, we doubt that the recovery in the construction sector will race away," said Tombs.

"The sector appeared to have taken residence in a waiting room of non-activity, as continuing poor global economic conditions and uncertainty around the EU referendum impacted growth and new orders," said David Noble, group chief executive at the Chartered Institute of Purchasing & Supply.

"Supplier performance degraded and continued their downwards trend which began in September 2010. Purchasing activity ground to a virtual standstill," said Noble.

The construction sector dominates the British economy, contributing around 5.9 percent of the gross domestic product, according to the Office of National Statistics. Enditem