December 05, 2024 at 09:30AM
Prior 54.3
The jump last month was driven by the strongest rise in commercial work for two-and-a-half years, as that helped to offset a further decline in home building activity – which saw its sharpest decline since June. Besides that, new order growth also weakened to a five-month low while employment conditions also eased further with job creation seen at a three-month low. S&P Global notes that:
“The construction sector bucked the slowdown seen
elsewhere across the UK economy in November,
according to the latest S&P Global PMI survey. Total
industry activity once again expanded at a robust pace
and there has been a clear acceleration in growth
compared to that seen in the first half of 2024.
“However, the recovery in construction activity
remains somewhat lopsided. Strengthening demand
for commercial work and civil engineering projects
contrasted with a sustained downturn in house building.
Commercial construction activity expanded at the
fastest pace for two-and-a-half years in November, while
residential work declined at the steepest rate since June.
Elevated borrowing costs and fragile client confidence
meanwhile acted as a brake on new order growth in
November, with the upturn in sales the slowest for five
months.
“A loss of momentum for new work, alongside concerns
about rising employment costs, resulted in weaker
job creation and falling business optimism across the
construction sector. The degree of positive sentiment
regarding year-ahead growth prospects dropped to the
lowest since October 2023. Many construction companies
cited concerns about the near-term UK economic outlook
and subsequent cutbacks to new projects.”
This article was written by Justin Low at www.forexlive.com.
