Activity in the UK construction sector contracted for the eighth consecutive month in December. Thus, the indicator reports its longest decline since the financial crisis as the political uncertainty and parliamentary elections caused a downturn in demand.

The Purchasing Managers’ Index (PMI) for the construction sector, calculated by IHS Markit, dropped to 44.4 points from 45.3 points reported in November. In comparison, analysts expected the indicator to reach at least 45.9 points, a step away from the 50-point line separating contraction from expansion.

The level of infrastructure construction has fallen at its fastest pace since March 2009, while the construction of retail outlets and homes has also fallen. However, business prospects are improving as companies predict that greater clarity on Brexit after Boris Johnson’s victory in the December 12th parliamentary elections could increase orders in 2020.

“The UK construction sector has been limping over the last quarter of 2019,” said Tim Moore, associate economic director at IHS Markit. “The forecast indicators give some hope that the difficulties in the construction sector will start to decrease in the coming months”, added he.