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Construction sector slows

by LLB staff reporter
4th Jul 24 12:16 pm

The recovery in construction has lost momentum amid a slump in housebuilding which comes as companies have reported slow growth in new orders.

The latest S&P Global construction purchasing managers’ index (PMI) reported a 52.2 score for June compared to 54.7 in May.

Andrew Harker, economics director at S&P Global Market Intelligence, said: “Continued growth of the UK construction sector in June meant that the sector has recorded sustained expansion throughout the second quarter of the year.

“While there were signs of a slowdown in the latest survey period, most notably around housing activity, firms indicated that a slowdown in new order growth was in part related to election uncertainty.

“We may therefore see trends improve once the election period comes to an end.”

Kelly Boorman, national head of construction at RSMUK, said: “With the availability of subcontractors increasing, it appears there has been a delay to works carried out in June, which may be linked to businesses waiting on the outcome of today’s General Election.

“With housing targets, infrastructure investment and planning reform outlined as priorities by both major political parties, industry will be keeping a keen eye on how the next government will look to re-stimulate the market and support long-term growth, especially as housebuilders anticipate a ramp-up in 2025.

“We also expect interest rates to fall later in the year, which will help housebuilders manage material costs and margins throughout the supply chain, attracting potential inbound investment opportunities.”

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