UK Construction Sector Records Longest Downturn Since 2020
- brg_news_room
- Sep 17
- 1 min read
UK: Britain’s construction industry contracted for the eighth consecutive month in August, records longest downturn since the start of the Covid-19 pandemic in 2020. The S&P Global UK construction purchasing managers’ index (PMI) registered 45.5, up from 44.3 in July but still below the neutral 50 threshold that separates growth from contraction. Output weakened across all three main subsectors, with civil engineering reporting the steepest fall since October 2020, while residential activity continued to decline at the sharpest rate since February. Commercial building saw a slower reduction, partially offsetting the overall fall.
The report highlighted subdued optimism among firms, with confidence at its lowest level since December 2022. Companies reported difficult market conditions, increased price competition and weaker demand, leading to intensified job cuts and hiring freezes. However, purchasing price inflation eased to a 10-month low, helping reduce cost pressures. Analysts noted that sentiment remains fragile, though some pointed to signs of resilience in commercial property lending and expectations of a gradual recovery if interest rates fall.
Source: MSN
