Output rates and new order growth slowed in November according to the Chartered Institute of Purchasing and Supply
Construction activity slowed last month according to the Chartered Institute of Purchasing and Supply (CIPS).
Output rates and new order growth fell and input price inflation accelerated considerably, although companies registered a positive month.
Roy Ayliffe, director of professional practice at the CIPS, said: “While purchasing managers reported another positive month for the UK construction sector, its expansion was the lowest recorded in over a year. Surprisingly, there were varying levels of growth throughout the three sub-sectors - with residential construction activity rising only modestly.”
The report stated that the sharp rise in input price inflation was due to price increases in materials, including oil and glass. The input price index revealed the highest average cost inflation in three months.
Ayliffe said: “Higher costs for crucial materials, such as oil and glass, made a negative impact on the sector as input price inflation accelerated at its sharpest rate in three months. Nonetheless, expectations of improving market conditions prompted the sector to be optimistic about future performance.”
