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UK construction slides again, pulled down by weak housebuilding, PMI shows
Surveyed firms cited subdued demand and fewer new projects as housebuilding activity fell sharply, while construction output declined for a third month.
On Friday, the S&P Global UK Construction Purchasing Managers' Index fell to 44.3 in August from 44.7 in July, marking the 20th consecutive month of contraction.
Housebuilding activity deteriorated sharply, driving the overall decline despite minor improvements in the commercial and civil engineering sectors.
Tim Moore, economics director at S&P Global Market Intelligence, cited "sluggish demand conditions and low client confidence" as primary factors, with higher energy prices and elevated interest rates further weighing on demand.
Weakness in the housebuilding sector underscores the challenge facing Prime Minister Andy Burnham, who intends to ramp up social housing supply amid persistent uncertainty over planning reforms.
In contrast, the broader UK all-sector PMI—which combines manufacturing, services, and construction data—rose to a six-month high of 51.8 in August, illustrating divergence between construction and the wider economy.