Steepest decline in housing activity for three years
The fastest fall in housing activity for nearly three years failed to dent an improvement in construction output last month, new data shows.
The latest S&P Global/CIPS UK Construction PMI figures published today show output rose to 51.1 in April from 50.7 the previous month.
But housebuilding activity, blunted by last September’s mini-Budget, stayed in the doldrums with a score of 43 – any figure below 50 indicates a decline – which the survey said was the steepest drop since May 2020.
Among the reasons given for the fall were delays to new projects, softer market conditions and higher borrowing costs.
There was better news for the commercial and civil engineering sectors with commercial posting a score of 53.9 and civils’ number hitting 52.
Tim Moore, economics director at S&P Global Market Intelligence, said the rise in output was positive but admitted growth “appears worryingly lopsided as residential work decreased for the fifth successive month”.
New orders rose the third successive month while employment was up in the wake of rising activity and upcoming project starts.
Max Jones, director in Lloyds Bank’s infrastructure and construction team, added: “Construction firms we speak to remain broadly optimistic, with order books holding up and healthy pipelines. Many are now reaping the rewards of strong demand and high prices, without needing to rush to compete on costs.”
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