The construction sector in the United Kingdom continued to expand in April but fell to its lowest level so far for the year.
Source: Markit Economics
EWU is down 0.66%, while EZU is down 0.70% premarket.
The headline S&P Global / CIPS UK Construction Purchasing Managers’ Index stood at 58.2 in April, extending the growth for the 14th straight month. This is the weakest growth since December 2021.
The steepest loss was seen in the residential work sub-sector, falling by 1.1 points to 53.8 from 54.9 the previous month. Companies reported higher costs and concerns over the economic outlook, impacting demand.
The Future Activity Index fell to a 19-month low. Firms expecting business activity to increase in the next year continued to surpass those expecting a downturn, but the gap narrowed during the month.
S&P Global Economics Director Tim Moore believes the sector is shifting towards a “more subdued” recovery period, given the steep increase in energy and raw material costs.
Commercial and civil engineering works were the most resilient segments during the month, boosted by COVID-19 recovery spending.