Steep falls in housebuilding drive contraction in UK construction

UK construction activity contracted in October, although slightly less so than in September, according to the S&P Global/CIPS UK construction PMI. The ongoing downturn has been driven by a sharp contraction in housebuilding on the back of higher borrowing costs. CIPS chief economist John Glen said: “High interest rates and low consumer demand for new homes continue to drag down the UK construction sector, with a lack of new tender opportunities and a cutback of existing projects being reported across the housebuilding industry.”  

Financial Times (06/11/2023)   Mortgage Strategy (06/11/2023)