UK PMI Construction ticked down from 45.6 to 45.5 in November, remaining below the neutral 50 mark and underperforming against the expected 47.1. This level indicates continued contraction in the construction sector for the third month, marking it as the second-lowest reading since May 2020.
Tim Moore of S&P Global Market Intelligence highlighted the sector’s issues, stating, “A slump in house building has cast a long shadow over the UK construction sector.” He pointed out that the downturn in residential construction has persisted for the past 12 months, with recent reductions among the steepest since 2009.
Elevated mortgage costs and adverse market conditions were cited as key reasons for the decline in housing projects. Additionally, rising interest rates and economic uncertainty are adversely affecting commercial construction, while civil engineering activity saw its sharpest drop since July 2022.
Moore also noted a significant decrease in overall input prices for the second consecutive month, marking the fastest rate of decline since July 2009. Despite this decrease in costs, the sector continues to face substantial challenges.
