UK building firms suffer worst run since financial crisis

Britain's construction sector has recorded its worst run since the financial crisis almost two decades ago, with housebuilding mired in the deepest slump since the start of the Covid pandemic in 2020.

- Julia Kollewe

UK construction output shrank for the 12th month in a row in December, the longest unbroken run of decline since the 2007-09 global crash, although there were signs of optimism among building firms, according to a monthly survey.

The purchasing managers' index (PMI) from S&P Global and Cips had a headline reading of 40.1 in December, close to its five-and-a-half-year low of 39.4 in November. Any reading below 50 indicates contraction.

Economists had predicted a slight improvement, to 42.5.

“UK construction companies once again reported challenging business conditions and falling workloads in December, but the speed of the downturn moderated from the five-and-a-half-year record seen in November,” said Tim Moore, an economics director at S&P Global Market Intelligence.