Construction output in August fell for the eighth successive month, weighed by marked reductions in housing and civil engineering, information from S&P Global UK Construction PMI exhibits.
At the identical time, agency’s projections for enterprise for the yr forward have been the least upbeat in greater than two-and-a-half years.
S&P Global Market Intelligence economics director Tim Moore says that “elevated enterprise uncertainty and worries about broader prospects for the UK economic system,” have been behind the gloomy outlook corporations held.
The survey says that in complete business exercise registered a mark of 45.5 in August, up from 44.3 in July, which was the bottom studying in simply over 5 years. A mark above 50 signifies progress.
Housing work posted a decline of 44.2, whereas civil engineering was the worst performing sector, at 38.1, with enterprise exercise in this space falling on the quickest tempo since October 2020.
New orders throughout the entire of the business fell for the eighth month operating in August, though the speed of decline eased to the least marked since January.
“Construction corporations extensively commented on difficult market situations, intense worth competitors and headwinds from sluggish UK financial exercise,” the examine says.
The survey highlighted a renewed weakening in enterprise optimism throughout the development sector.
Around 34% of corporations predict an increase in output throughout the yr forward, whereas 22% forecast a discount. The lowest diploma of confidence since December 2022.
Moore provides: “Construction exercise has decreased all through the year-to-date, which is the longest steady downturn since early 2020.
“August information signalled solely a partial easing in the pace of decline after output fell on the quickest tempo for over 5 years in July.
“Sharply diminished ranges of housing and civil engineering exercise have been once more the principle causes for a weak general development sector efficiency.”
