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Economic Buzz: UK construction sector contracts after ten months
06-Feb-2025 17:21
The UK construction sector contracted in January, ending a 10-month period of expansion due to shrinking orders and rising cost pressures, survey results from S&P Global showed on Thursday. The construction Purchasing Managers' Index edged up to 48.1 in January from 53.3 in December. The index registered below the 50.0 threshold for the first time since February 2024. Incoming new work dropped for the first time in twelve months and at the steepest pace since November 2023. A lack of confidence and worries about the economic outlook contributed to fewer sales enquiries. The survey noted that delayed decision-making by clients on major projects and general economic uncertainty weighed on business activity.

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