Buyers see sharpest fall in activity for five years

The bellwether S&P World UK Building Buying Managers’ Index posted 44.3 in July, down from 48.8 in June signalling the sharpest contraction in over 5 years.

Companies blamed web site delays, decrease volumes of incoming new enterprise and weaker buyer confidence whereas some respondents additionally cited decrease work undertaken on public sector initiatives.

Work fell throughout all sectors with residential the toughest hit.

Joe Hayes, Principal Economist at S&P World Market Intelligence, stated: “Having trended upwards in latest months, our survey knowledge for July sign a contemporary setback for the UK development sector, with complete trade exercise falling on the sharpest charge since Could 2020. Dissecting the most recent contraction, we are able to see a contemporary and sharp drop in residential constructing, in addition to an accelerated fall in work carried out on civil engineering initiatives.

“Ahead-looking indicators from the survey indicate that UK constructors are getting ready for difficult occasions forward. They’re shopping for much less supplies and lowering the variety of employees on the payroll. Expectations additionally proceed to underwhelm, regardless of a modest pick-up in confidence from June’s two-and-a-half-year low.

“Anecdotally, firms reported an absence of tender alternatives and a hesitancy from prospects to decide to initiatives. Broader themes of uncertainty, each domestically but additionally internationally, will do little to reignite funding appetites.”