UK Construction Logs Sharpest Downturn Since 2020

RTTNews | 47 days ago

(RTTNews) - The UK construction sector registered the sharpest contraction since May 2020 on notable falls in orders and output, survey results from S&P Global showed on Thursday.

The construction Purchasing Managers' Index fell unexpectedly to 44.6 in February from 48.1 in January. The reading was seen at 49.5.

The latest reading signaled the worst performance in construction activity in nearly five years.

Residential building shrank for the fifth straight month and was the weakest performer in February. The decline reflected weak demand conditions, headwinds from elevated borrowing costs and a lack of new work to replace completed projects.

Civil engineering activity contracted the most since October 2020. Output levels fell only marginally in commercial construction.

New order intakes dropped sharply and to the greatest extent since May 2020. There was a decline in staffing numbers with the pace of job shedding the sharpest since November 2020.

Input buying dropped for the third straight month. At the same time, weaker demand for construction products and material contributed to an improvement in overall supplier performance for the first time since October 2024.

The survey showed that inflationary pressures intensified in February. Contractors reported the sharpest rise in average cost burdens for nearly two years.

Further, business activity expectations remained positive, despite a steep decline in order books and concerns about a lack of new tender opportunities.

Tags: GBP

UK Inflation Slows To 2.6%

UK consumer price inflation weakened more than expected to a three-month low in March ahead of an increase in energy bills in April, the Office for National Statistics said on Wednesday. Consumer prices registered an annual growth of 2.6 percent, slower than the 2.8 percent increase in February. Prices were forecast to climb 2.7 percent.

RTTNews | 6 days ago

UK Job Market Remains Strong

The UK labor market remained strong in the three months to February, ahead of rise in payroll taxes and new trade tariffs, data from the Office for National Statistics revealed Tuesday. Annual growth in employees' earnings excluding bonuses was 5.9 percent in the December to February period.

RTTNews | 7 days ago

UK GDP Growth Rebounds In February

The UK economy expanded at a solid pace in February with increases in all main sectors but recent trade tariffs announced by the US administration cast shadow over recovery prospects. Real gross domestic product grew 0.5 percent from the previous month following a nil growth in January, data from the Office for National Statistics revealed Friday. GDP was expected to climb 0.1 percent.

RTTNews | 11 days ago

UK Housing Market Conditions Weaken On Challenging Macroeconomic Factors

The UK housing market conditions weakened in March as demand faded following the end of stamp duty holiday amid rising concerns about economic outlook, survey data showed on Thursday. New buyer demand turned negative and hit the lowest since September 2023, the Residential Market Survey from the Royal Institution of Chartered Surveyors showed on Thursday.

RTTNews | 12 days ago

UK House Prices Fall For Second Month

UK house prices dropped for the second straight month in March as stamp duty holiday ended amid weaker economic outlook, mortgage lender Halifax said Monday. House prices slid unexpectedly by 0.5 percent month-on-month, bigger than February's 0.2 percent drop. This was the second consecutive decline. Prices were forecast to climb 0.2 percent.

RTTNews | 16 days ago

UK House Prices Stall In March

UK house prices remained flat as the stamp duty holiday ended at the end of March, data from the Nationwide Building Society showed on Tuesday. House prices showed nil growth in March compared to February. This followed an increase of 0.4 percent in the previous month. On a yearly basis, house price growth remained unchanged at 3.9 percent in March.

RTTNews | 22 days ago

UK Mortgage Approvals Fall Slightly; Consumer Credit Drops

UK mortgage approvals for house purchase decreased slightly in February, as changes in stamp duty from April 1 softened housing market activity, while consumer credit decreased from the last month, official data showed on Monday. Mortgage approvals for house purchases decreased 600 to 65,500 in February, the Bank of England reported. This followed a decrease of 400 in January.

RTTNews | 22 days ago

UK Economy Grows Marginally As Estimated; Retail Sales Rebound Unexpectedly

The UK economy logged a marginal growth as initially estimated in the fourth quarter as the decline in production was offset by the growth in services and construction sectors, official data showed Friday. Another data revealed that retail sales expanded unexpectedly in February driven by the rebound in non-food store and auto fuel sales.

RTTNews | 25 days ago

EURUSD	1.13937	GBPUSD	1.33126	AUDUSD	0.63964
USDJPY	141.841	USDCAD	1.38311	USDCHF	0.82249

Advertisement

UK Construction Logs Sharpest Downturn Since 2020