UK Construction Output Flat, Business Optimism Slips to 17-Month Low

Source: Markit Economics

Construction output in the United Kingdom was unchanged in March from the previous month but remained at the fastest growth since June 2021. EWU is down 0.35%

• The Construction Purchasing Managers’ Index was recorded at 59.1 in March, unchanged from February. This is still the fastest growth since June last year.
• Respondents cited inflationary issues, along with concerns over the geopolitical tensions between Russia and Ukraine.
• Commercial work posted the best performance, with the index at 60.8 as projects restarted with pandemic restrictions eased.
• Decelerations were recorded in both civil engineering and residential work which saw its slowest expansion out of the three broad categories.
• New orders accelerated to their fastest growth since August 2021, as firms noted strong customer demand.
• Business optimism fell to a 17-month low, dragged by concerns over the ongoing conflict in Ukraine and its impact on global prices.