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UK Construction Growth Slows to Five-Month Low

August 5, 2021 by Forex Winner Leave a Comment

UK Construction Growth Slows to Five-Month Low

Source: IHS Markit

The expansion of the United Kingdom’s construction output slowed to a five-month low in July, as firms struggled to keep pace with the surge in demand.

  • The headline seasonally adjusted IHS Markit/CIPS UK Construction PMI Total Activity Index stood at 58.7 in July.
  • The latest reading is the slowest since February, following the 24-year high of 66.3 in June.
  • The house building category recorded the biggest growth, followed by the commercial building category. Both were also the weakest since February.
  • The slowdown was due to capacity and growth constraints caused by supply chain issues, even as customer demand started to wane.
  • Civil engineering activity continued to expand, but growth was also the slowest in five months.
  • New work growth slowed to the weakest since February, while input buying growth noted the slowest pace since April due to softer demand.
  • The majority of businesses reported longer wait times for supplier deliveries, reflecting supply chain delays.

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