Construction sector suffers severe downturn

The construction sector experienced its most significant output decline in five and a half years, according to a recent S&P Global survey. The purchasing managers' index (PMI) fell to 39.4, indicating a sharp downturn across all sub-sectors, particularly housing, which dropped to 35.4. Investor confidence waned due to a lack of new projects and budget speculation. Thomas Pugh, chief economist at RSM, noted: "Pre-budget speculation about large tax rises was having a significant negative impact on business confidence." However, he added that sentiment should improve in the months ahead as confidence improves after the Budget.