August’s S&P Global / CIPS UK Construction PMI Report highlights further slowing in housebuilding

The August S&P Global / CIPS UK Construction Purchasing Managers' Index (PMI) report found an increase in activity in August as well as continued improvements in material availability and costs. However, housebuilding remains a concern for the industry. The growth in the output of the UK construction industry seen in July continued in August, although only a marginal expansion. This was driven by strong growth in the commercial building sector as well as robust levels of activity in civil engineering. However, housebuilding declined again in August driven by high interest rates and caution among clients in the residential sector. Employment numbers continued to increase for the seventh consecutive month, but the report notes that this growth was only modest and likely a result of the generally more subdued performance of the sector as a whole. The S&P / CIPS report included some more positive developments for the industry. Continuing the trend of recent months, delivery times and material availability improved again. A better balance between demand and supply also meant that prices have been able to stabilise in August with the data showing only a small rise in purchase prices.

For more information, read the full report summary.