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The UK construction sector continued to decline in October, numbers on Monday showed, amid another tricky month for housebuilding.
The latest S&P Global/Chartered Institute of Procurement & Supply construction purchasing managers’ index rose to 45.6 points in October, from 45.0 in September. The latest reading was still below the 50-point no-change mark. It was the second-lowest reading since May 2020.
‘House building decreased for the eleventh successive month in October and at a much steeper pace than elsewhere in the construction sector,’ S&P Global said.
‘Falling work on residential construction projects was widely linked to a lack of demand and subsequent cutbacks to new projects.’
New work fell for the third month running in October. It was the joint-sharpest rate of decline since the pandemic-hit May 2020.
‘Worries about shrinking pipelines of construction work contributed to a moderation in business confidence for the third successive month in October. Around 37% of the survey panel forecast a rise in business activity during the year ahead, while 19% predict a decline. The degree of optimism signalled by the survey in October was the lowest so far this year. A number of firms commented on particular weakness in the house building sector and an ongoing headwind from higher interest rates,’ S&P Global added.
The data is compiled using the responses of a survey sent to 150 construction firms.
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