Activity in the construction sector has rapidly declined, according to data.

The construction sector suffered its worst downturn in output for five and a half years last month, new figures have shown, in a warning to the Labour government as it hopes to build 1.5 homes by 2030.

A monthly S&P Global survey showed that the decline in output rapidly accelerated over the month, with the purchasing managers’ index ( PMI ) falling to 39.4, more than 10 points below the benchmark figure for neutrality.

Housing activity weighed on construction output, with the PMI for the sub-sector dropping to 35.4. Commercial construction was 43.8 while the PMI for civil engineering stood at 30, with all areas dropping at the fastest rate since the pandemic.

The drop in output was driven by low confidence

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