(IHS Markit) The UK Construction sector output expanded the slowest in eight months as subcontractors’ charges rose the sharpest in 23 years due to supply and demand imbalance.
Construction business activity softened in September, with the index dropping to 52.6 from 55.2 in August. The index hit a 24-year high of 66.3 in June.
The civil engineering category had the slowest growth at 51 compared to 54.8 recorded in August.
House building dropped to 52.8, the lowest level since the recovery started in June 2020. The commercial segment expanded the highest at 53.6.
The rate of growth in new orders recorded by construction firms eased to the weakest year-to-date.
The construction sector had a substantial rise in employment supported by high workloads. Waiting time in filling vacancies remained longer.
The rate of inflation improved compared to an all-time high recorded in June despite purchase prices increasing rapidly.
Businesses in the construction sector are upbeat that output will increase despite concerns over supply chain challenges weakening confidence from that of August.
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