UK construction shrinking at 'fastest rate since Covid'

ACTIVITY in Britain’s building industry is contracting at the most rapid rate since the pandemic in 2020 as high costs and tax hikes bite.

- By Mauricio Alencar

The sector is vital for the Government’s plans for a house building boom and improvements in infrastructure, with the private sector expected to boost economic growth.

But S&P Global’s latest purchasing managers’ index release suggests construction is suffering from a drop in residential building and civil engineering projects.

The survey of around 150 companies showed another contraction in output as the PMI reading dropped from 48.8 in June to 44.3 last month. Anything over 50 signals expansion, while anything below signals contraction.