"A rapid acceleration of input cost inflation was seen across the UK construction sector in April. Aside from the post-pandemic surge in input prices from early 2021 to mid-2022, the latest rise in purchasing costs was the steepest in three decades of data collection. Around two-thirds of the survey panel reported higher cost burdens in April, which was overwhelmingly linked to fuel surcharges and subsequent rises in raw material prices."
"The S&P Global UK construction purchasing managers' index (PMI) dropped to 39.7 in April from 45.6 in March, signalling a marked contraction in output and the fastest deterioration since late last year. The decline reflects broad-based weakness across the sector, with civil engineering particularly affected, while both residential housebuilding and commercial construction continued to contract."
"The survey also pointed to growing caution among clients, with uncertainty surrounding the Middle East conflict prompting delays to spending decisions and fewer new projects coming to market. Industry firms said this hesitation was compounding already fragile demand conditions, with output now falling for several consecutive months at the start of 2025."
UK construction experienced significant contraction in April, with the S&P Global PMI falling to 39.7 from 45.6 in March, indicating the fastest deterioration since late 2024. Civil engineering faced particular weakness, while residential and commercial construction continued declining. Rising energy and fuel costs, partly linked to Middle East conflict, drove rapid input price inflation—the steepest increase in three decades. Suppliers passed higher transport and energy costs through the supply chain, with approximately two-thirds of firms reporting increased cost burdens. Client caution intensified due to geopolitical uncertainty, causing spending delays and fewer new projects. Output has fallen consecutively at the start of 2025, compounding already weak demand conditions.
#uk-construction-contraction #input-cost-inflation #geopolitical-uncertainty #supply-chain-challenges #economic-slowdown
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]