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Growth in the UK’s construction sector slowed more than expected in November, according to the latest figures on Tuesday.
The S&P Global/CIPS UK construction purchasing managers’ index fell to 50.4 in November, from 53.2 in October. Falling close towards the 50.0 no-change mark, it shows that growth in the sector has slowed.
The reading came in lower than FXStreet-cited market consensus of 52.0.
‘Survey respondents noted that new residential building projects had been curtailed in response to rising interest rates, cancelled sales and worries about the economic outlook,’ said Tim Moore, S&P Global Market Intelligence economics director.
‘Construction growth was largely confined to the commercial segment, but even here the speed of expansion slowed considerably since October as client confidence weakened in response to heightened business uncertainty,’ Moore expanded.
If the first three months of the pandemic are excluded, business expectations fell to their joint-lowest since December 2008. Respondents cited interest rates, recession fears and a ‘subdued’ housing market outlook.
Nevertheless, the number of construction firms that expect a rise in business activity over the next year outnumbered those who expected a decline, albeit by a ‘very fine margin’.
The S&P Global/CIPS UK construction PMI is compiled from responses to surveys sent to around 150 construction companies, with data collected between November 11 and 29.
By Elizabeth Winter, senior markets reporter
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