UK construction output falls at fastest pace in 6 years
Britain's construction sector logged a steep downturn in business activity in May, contracting at the fastest pace in six years, data from S&P Global showed Thursday.
The seasonally adjusted S&P Global UK construction purchasing managers' index stood at 38.2 in May, down from 39.7 in April and below the neutral 50.0 threshold for the 17th consecutive month, according to S&P Global, News.az reports, citing Xinhua.
It noted the rate of contraction was the steepest since May 2020. Aside from the drop in construction output at the start of the pandemic, the latest fall was the fastest since March 2009.
Tim Moore, economics director at S&P Global Market Intelligence, said economic uncertainty and rising inflation in the wake of the Middle East conflict had triggered the steepest drop in new work since the beginning of the pandemic. Elevated borrowing costs were also reported to have impacted market conditions.
Fuel surcharges and rapid increases in the prices of energy-intensive raw materials continued to be felt across the construction supply chain, causing overall purchasing costs to rise at the fastest pace since June 2022, he added.
Optimism regarding business activity expectations for the next 12 months eased to its second-lowest since December 2022, the company said, noting that subdued business confidence was generally attributed to concerns about rising inflation, elevated borrowing costs and unfavorable near-term projections for domestic economic conditions.
By Faig Mahmudov
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