UK Construction Sector Faces 18th Month of Decline Amidst Rising Costs and Weak Demand
Activity in the British construction industry contracted for the 18th consecutive month in June, reaching its second-worst reading since the pandemic began.
The British construction sector has experienced its 18th consecutive month of decline, according to data from S&P Global. The activity index for June registered 38.4, a figure below 50 indicating contraction. This reading marks the second-worst performance since the onset of the COVID-19 pandemic, closely following May's six-year low of 38.2.
Housebuilding saw its most challenging month of the year to date, impacted by elevated mortgage costs and a lack of demand. Civil engineering activities also experienced a significant downturn, falling at the fastest rate recorded since April 2020, during the initial UK lockdown.
Construction companies cited several headwinds contributing to the slowdown. These include subdued housing sales, persistently high interest rates, and pressure on consumer finances. Andrew Griffith, Shadow Business Secretary, stated that the construction sector is "absolutely crushed with cost pressures rising and business confidence at rock bottom."