Construction Slumps6 Feb 2025 10:23
“Britain’s construction sector activity fell unexpectedly for the first time in nearly a year as economic uncertainty weighed on the industry, according to new figures.
Bosses said cost inflation accelerated to a 21-month high in January just as they grappled with a renewed downturn in order books, according to the S&P Global construction purchasing managers’ index (PMI).
The index showed a reading of 48.1 in January, down sharply from 53.3 in December and the first result signalling a contraction since February 2024.
The Bank of England is expected to cut interest rates later today amid growing signs of weakeness in Britain’s economy.
Tim Moore, economics director at S&P Global, said the construction sector had been hit by “gloomy economic prospects, elevated borrowing costs and weak client confidence”.
He added: “New orders decreased at the fastest pace since November 2023 amid many reports of delayed decision-making by clients.
“Reduced workloads, combined with concerns about the general UK economic outlook, led to a dip in business activity expectations to the lowest for 15 months.”
Labour delivering on failure.