LONDON (dpa-AFX) - The UK construction activity contracted at the fastest pace in four months in October, purchasing managers' survey data from S&P Global showed Thursday.
The construction purchasing managers' index dropped to 43.6 in October from 46.1 in September. Any reading below 50 indicates contraction in the sector.
Among three monitored sectors, residential activity was the weakest-performing segment due to low consumer confidence, elevated risk aversion, and headwinds from rising borrowing costs. Civil engineering work fell at a slower pace, and commercial activity also showed some resilience in October.
Total new works received by construction companies fell at the sharpest pace in four months, reflecting subdued market conditions and fragile customer demand. Consequently, firms reduced their purchasing activity.
Supplier performance deteriorated for the third month, linked to low stocks, transport delays, and spillovers from stretched manufacturing supply chains.
On the price front, input price inflation accelerated sharply in October, led by fuel surcharges, alongside increased energy costs and raw material prices.
'Faced with rising input price inflation, higher borrowing costs, and reduced order books, construction firms were unsurprisingly cautious about the year ahead business outlook,' Tim Moore, Economics Director at S&P Global Market Intelligence, said.
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