Economic Buzz: UK Construction Activity Falls In August

6 Sep 2022 , 04:23 PM

Construction activity in the UK dipped for the second successive month in August as customer demand moved closer to stagnation amid cost pressures and economic uncertainty. Concerns about wider economic prospects led to a drop in business confidence and slower job creation, while firms purchasing activity declined. The headline seasonally adjusted S&P Global / CIPS UK Construction Purchasing Managers Index (PMI) – which measures month-on-month changes in total industry activity – was at 49.2 in August, up fractionally from 48.9 in July but still below the 50.0 no-change mark and thus signaling a reduction in construction activity over the month. New orders increased only marginally in August, and to the least extent since June 2020. Alongside inflationary pressures, concerns around the potential for a wider economic downturn also impacted the sector in August. Business confidence dropped in July and was well below the series average. Powered by Commodity Insights