UK Constructions Expands for Ninth Straight Month in October

Source: IHS Markit

Construction activity in the United Kingdom picked up in October, marking the ninth straight month of expansion. IUKP.L is up 2.55%

• The headline seasonally adjusted IHS Markit/CIPS UK Construction PMI Total Activity Index climbed to 54.6 in October from 52.6 in September.
• The index was driven mainly by house building with the index at 55.4, while commercial work stood at 55.2. Civil engineering activity was slightly up to 51.4.
• Residential work posted a three-month high, while commercial construction also climbed amid the easing of pandemic restrictions.
• New order growth was flat from the previous month’s eight-month low, with firms noting the supply shortages and higher costs that hit negotiations.
• Over half of the firms noted prolonged delivery times among suppliers, attributed to haulage driver shortages and international congestion.
• Majority of the firms also recorded higher purchase prices during the month, combined with a lack of raw materials and transport availability.