UK Construction Logs Sharpest Downturn Since 2020

RTTNews | 119 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 Service Sector Growth At 10-Month High

The UK service sector posted its fastest growth in ten months in June underpinned by a renewed improvement in order books, final purchasing managers' survey from S&P Global showed on Thursday. The services business activity index climbed to 52.8 in June from 50.9 in the previous month. This was the highest score since August 2024 and above the initial estimate of 51.3.

RTTNews | 14h 24min ago

UK House Price Inflation Softens In June

UK house prices logged a slower growth in June reflecting weaker demand after the increase in stamp duty at the start of April, data from the Nationwide Building Society showed on Tuesday. House prices advanced 2.1 percent year-on-year in June, slower than the 3.5 percent increase seen in May. House price growth was expected to moderate to 3.3 percent.

RTTNews | 2 days ago

UK Mortgage Approvals Rise For First Time This Year

UK mortgage approvals increased for the first time so far this year in May, suggesting an improvement in housing market activity, figures from the Bank of England showed Monday. The net mortgage approvals for house purchases that indicate future borrowing rose by more-than-expected 2,400 to 63,000 in May. This was the first increase since December 2024.

RTTNews | 3 days ago

UK GDP Growth Confirmed At 0.7%

The UK economy expanded at a stronger pace in the first quarter as previously estimated on robust services and industrial production, revised data from the Office for National Statistics showed on Monday. Real gross domestic product grew 0.7 percent, unrevised from the first estimate. This followed 0.1 percent expansion in the fourth quarter and marked the fastest growth since the first quarter.

RTTNews | 3 days ago

BoE's Greene Seeks Cautious Approach On Concerns Over High Inflation, Uncertainty

The Bank of England must have a prudent approach to reducing interest rates as the U.K. inflation may remain high for a longer time than expected rather than a short-term spike, and also due to risks on the global front including fluctuations in oil prices in the backdrop of the ongoing Middle East conflict, policymaker Megan Greene said on Tuesday.

RTTNews | 9 days ago

UK Private Sector Grows At Fastest Pace In 3 Months

The UK private sector output picked up at the strongest pace in three months in June after business volume returned to growth, flash survey results from S&P Global showed on Monday. The flash composite output index registered 50.7 in June, up from 50.3 in May. The reading was above the crucial 50.0 no-change value for the second straight month.

RTTNews | 10 days ago

UK Retail Sales Fall Most Since Late 2023; Consumer Confidence Improves

UK retail sales declined more than expected in May as food store sales declined sharply after good weather boosted sales in April, the Office for National Statistics reported Friday. Retail sales fell 2.7 percent on a monthly basis in May, in contrast to the revised 1.3 percent increase in April. Sales were forecast to drop 0.5 percent.

RTTNews | 13 days ago

Bank Of England Holds Rate Steady On Higher Inflation

The Bank of England maintained interest rates unchanged on Thursday as inflation in the U.K. has remained persistently above the target and geopolitical tensions escalated, raising the upside risks to inflation. The BoE Monetary Policy Committee, led by Governor Andrew Bailey, voted 6-3 to hold the Bank Rate at 4.25 percent. Three members preferred to reduce the rate by 25 basis points.

RTTNews | 14 days ago

EURUSD	1.17675	GBPUSD	1.36545	AUDUSD	0.65697
USDJPY	144.622	USDCAD	1.35779	USDCHF	0.79438

Advertisement

UK Construction Logs Sharpest Downturn Since 2020