UK PMI Construction dropped from 52.6 to 48.9 in July, below expectation of 52.1. That’s the first contraction reading since January 2021, and worst since May 2020.
Tim Moore, Economics Director at S&P Global Market Intelligence, said:
“July data illustrated that cost of living pressures, higher interest rates and increasing recession risks for the UK economy are taking a toll on construction activity. Total industry output fell for the first time since the start of 2021 as civil engineering joined house building in contraction territory…. Expectations for output growth in the next 12 months are far less exuberant than those seen over the past two years, amid concerns that elevated inflation and higher borrowing costs will constrain demand.”
