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.