Construction of new homes in Britain almost ground to a halt last month as builders feared the cost-of-living squeeze and rising interest rates would constrain demand
May’s S&P Global/CIPS construction Purchasing Managers’ Index (PMI) fell to 56.4 in May from 58.2 in April, the lowest reading since January
“Residential construction activity was close to stagnation in May, which represented its worst performance for two years amid signs of softer demand and a headwind from low consumer confidence,” Tim Moore, economics director at S&P Global, said.
Suppliers continued to struggle to keep up with demand for construction products and materials, with 45% of the survey panel reporting longer lead times.
Tim Moore,added: “The construction sector is moving towards a more subdued recovery phase as sharply-rising energy and raw material costs hit client budgets.”
