21 Jul 2023

S&P Global / CIPS UK Construction PMI®: June 2023

June saw the fastest decline in residential building work since May 2020, though commercial building activity continued to increase.

The headline seasonally adjusted S&P Global / CIPS UK Construction Purchasing Managers' Index® (PMI®)—registered below the neutral 50.0 threshold for the first time for five months, standing at 48.9 in June, down from 51.6 in May. A noteworthy downturn in house building was the cause of the decrease in the overall figures. Residential work (39.6) decreased at its fastest pace since May 2020. Industry pointed to weaker demand as a result of rising borrowing costs and a subdued outlook for the housing market. Civil engineering (53.1) and commercial (53.0) construction activity continued to rise overall. The data also indicated a reduction in new orders for the first time since January. June however also saw the sharpest improvement in delivery times for construction inputs since July 2009, attributed to softer demand and fewer bottlenecks. The data also indicated the first outright decline in purchasing prices in 13 and a half years, though this was marginal.

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