- The S&P Global UK construction purchasing managers’ index fell to 52.2 in June
Growth in Britain’s construction sector slowed in June as housebuilding declined, according to a closely-watched survey.
The S&P Global UK construction purchasing managers’ index fell to 52.2 in June, from 54.7 in May. A reading of 50 or above indicates growth.
The only category to record a drop in activity was housing, where output fell ‘solidly’ following a first increase in 19 months during May.
The survey showed a slowdown in new orders as some firms took a wait-and-see approach to the general election.
Construction: Growth in Britain’s construction sector slowed in June, new data shows
Andrew Harker, economics director at S&P Global Market Intelligence, said: ‘While there were signs of a slowdown in the latest survey period, most notably around housing activity, firms indicated that a slowdown in new order growth was in part related to election uncertainty.’
He added: ‘We may therefore see trends improve once the election period comes to an end.’
The wider all-sector PMI, which includes results from the larger services and manufacturing sectors and was published earlier this week, dropped to 52.3 from 53.1 in May due to slower growth in the services sector.
Within the construction sector, new orders continued to grow, but the increase was the slowest since February, S&P said.
Activity in commercial construction and civil engineering rose, but Thursday’s survey showed a renewed fall in residential building work.
Firms reported an increase in employment, with the rate of job creation the fastest since August last year.
On inflation, Harker said: ‘In terms of inflation, there remains little sign of cost pressures picking up to any great extent, encouraging firms to expand purchasing activity. Supply-chain conditions also remained favourable.’
The Bank of England, which held interest rates at a 16-year high of 5.25 per cent last month, is closely monitoring wage growth and services costs as it considers cutting interest rates this year.
S&P said the cost of some raw materials ticked up last month, though pressure on supply chains eased.
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