The UK development business has declined for the primary time in 18 months, in line with a closely-watched survey.
The S&P Global/CIPS development buying managers’ index (PMI) scored 48.9 in July, dropping from a studying of 52.6 within the earlier month.
Anything above 50 signifies progress.
It was the primary decline since January 2021 and the worst studying general since May 2020.
Housebuilding fell for the second consecutive month, and civil engineering corporations reported their worst outcome for nearly two years, with a studying of 40.1.
Commercial development work grew, however extra slowly than throughout the earlier month.
The report additionally mentioned that recruitment grew at an accelerated degree in July however there have been nonetheless difficulties with filling vacancies and robust wage pressures.
Tim Moore, economics director at S&P Global Market Intelligence, mentioned: “July data illustrated that cost-of-living pressures, higher interest rates and increasing recession risks for the UK economy are taking a toll on construction activity.
“Total business output fell for the primary time for the reason that begin of 2021 as civil engineering joined housebuilding in contraction territory.
“Only the commercial segment registered growth in July, supported by strong pipelines of work from the reopening of hospitality, leisure and offices.”
Duncan Brock, group director on the Chartered Institute of Procurement & Supply (CIPS), mentioned: “Builders’ optimism remained at the lowest levels seen for two years.
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“Job creation was wholesome to finish work in hand however the hazard stays that, ought to the UK economic system flip unfavourable, this may have an effect on job hiring and the event of key abilities.
“A feather-like fall in prices may ease some of the pain as access to raw materials also improved, but prices at historically high levels will continue to hamper activity in 2023.”
Source: information.sky.com”