Steepest decline in housing activity for three years
The fastest fall in housing activity for nearly three years failed to dent an improvement in construction output last month, new data shows.
The latest S&P Global/CIPS UK Construction PMI figures published today show output rose to 51.1 in April from 50.7 the previous month.
But housebuilding activity, blunted by last September鈥檚 mini-Budget, stayed in the doldrums with a score of 43 鈥� any figure below 50 indicates a decline 鈥� which the survey said was the steepest drop since May 2020.
Among the reasons given for the fall were delays to new projects, softer market conditions and higher borrowing costs.
There was better news for the commercial and civil engineering sectors with commercial posting a score of 53.9 and civils鈥� number hitting 52.
Tim Moore, economics director at S&P Global Market Intelligence, said the rise in output was positive but admitted growth 鈥渁ppears worryingly lopsided as residential work decreased for the fifth successive month鈥�.
New orders rose the third successive month while employment was up in the wake of rising activity and upcoming project starts.
Max Jones, director in Lloyds Bank鈥檚 infrastructure and construction team, added: 鈥淐onstruction firms we speak to remain broadly optimistic, with order books holding up and healthy pipelines. Many are now reaping the rewards of strong demand and high prices, without needing to rush to compete on costs.鈥�
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