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The UK construction sector posted its slowest expansion since January in May amid a weaker month for the housing sector as consumer confidence continues to struggle.
Source: S&P Global
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The S&P Global UK construction purchasing managers’ index dropped to 56.4 points in May from April’s figure of 58.2.
S&P Global stated that May PMI data signaled another growth slowdown in the construction sector amid a significant loss of momentum for the residential category.
Higher borrowing costs and intense inflationary pressures were also cited as reasons likely to slow down over the next 12 months.
A weak trend in the house building sub-sector was the main reason for the slowed growth, with the index dropping to 50.7 from 53.8 in April.
Construction firms reported strong demand for commercial work despite a level of hesitancy due to the uncertain economic outlook.
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