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.