UK construction activity tumbles as Iran war pushes up costs, RICS survey shows
S&P Global said its construction PMI fell to 39.7 as firms reported higher fuel and material costs, delivery delays and weaker demand.
- Britain's construction sector shrank at the strongest pace in almost six years in the first quarter, with the Royal Institution of Chartered Surveyors reporting a net workloads balance of-12% as the war in Iran elevated costs.
- Conflict in Iran and shipping delays through the Strait of Hormuz pushed input cost inflation to 81.4 in April, the steepest rise in three decades excluding the post-pandemic period, according to S&P Global Market Intelligence.
- RICS Chief Economist Simon Rubinsohn said rising energy and material costs are squeezing profit margins, leading developers to slow activity and scale back projects as housebuilding expectations flatten.
- April's construction purchasing managers' index fell to 39.7 from 45.6 in March, while sluggish demand prompted businesses to cut jobs at the fastest rate in four months.
- The Bank of England is closely monitoring input prices and company charges to gauge whether inflationary pressures will necessitate increases in borrowing costs, as firms' optimism about future activity remains at five-month lows.
19 Articles
19 Articles
Evening Standard
UK builders hit by surging costs of fuel and materials as output drops
The S&P Global UK construction PMI showed a reading of 39.7 in April, down from 45.6 in March.
UK construction activity tumbles as Iran war pushes up costs, RICS survey shows
Activity in Britain's construction sector shrank at the strongest pace in almost six years in the three months to March, according to a survey on Thursday that also showed the war in Iran had increased firms' costs.
Steepest decline in construction output since November last year: S&P
April was a challenging month for the UK construction sector, with the steepest decline in construction output since November last year, S&P Global UK construction data reveals. The headline seasonally adjusted S&P Global UK Construction PMI registered 39.7 in April, down from 45.6 in March,… The post Steepest decline in construction output since November last year: S&P appeared first on Mortgage Finance Gazette.
Iran War Deepens UK Construction Industry Crisis
UK construction activity fell to its weakest level since November.Builders reported one of the sharpest jumps in costs on record in April.Supply chain delays linked to the Iran war added pressure across the sector.Britain’s construction sector suffered a sharp slowdown in April as rising costs, shipping disruption and uncertainty linked to the Iran war pushed builders deeper into contraction.New industry data showed UK construction activity drop…
Coverage Details
Bias Distribution
- 50% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
