Source: S&P Global
The Purchasing Managers’ Index, gauging the level of construction in the UK, dropped to 58.2 in April from 59.1 the previous month. The index marked the slowest output growth since January. FTSE 100 is down -0.81%, GBPUSD is down -0.01%.
- The fastest-growing construction segment was the commercial work, with an index of 60., while the civil engineering index came at 56.2. Residential work was the weakest sector, with the index plunging to 53.8 from 54.9.
- Total order volumes grew at the slowest rate in four months. The slowdown was related to high material costs, higher borrowing costs, and escalating geopolitical uncertainty.
- Employment maintained expansion, with the rate of job creation reaching a three-month high in April.
- Lead times lengthened as the index gauging the suppliers’ delivery times in the construction sector showed deteriorating conditions.
- Input costs rose at the fastest since September 2021, attributed to the high energy prices and raw materials.
- Business optimism was mixed, as the overall Future Activity Index hit a 19-month low. More firms still expect an upturn in business activity in the next twelve months.