UK April construction PMI 46.6 vs 45.8 expected | Forexlive

• Prior 46.4

The downturn in UK construction is seen easing a little, with house building showing some resilience. However, commercial work continues to decline and this time at its quickest pace since May 2020. So, that remains a drag. The overall sector is still in a challenging spot but at least there are some green shoots. S&P Global notes that:

“UK construction companies have endured a bumpy
ride since the start of the year as domestic economic
headwinds and hesitancy among clients led to a lack of
new work to replace completed contracts.

“Output levels continued to slide in April, but the rate of
decline eased to its slowest for three months. This was
helped by slower reductions in residential building work
and civil engineering activity.

“Commercial construction was a weak spot and lost
momentum since March. Output decreased at the
fastest pace for nearly five years amid reports of greater
risk aversion among clients and a wait-and-see approach
to major spending decisions.

“Despite a sharp and accelerated fall in input buying,
strong cost pressures persisted in April. Overall input
price inflation eased only slightly from March’s 26-month
peak. Survey respondents commented on rising prices
paid for a range of raw materials, as well as efforts by
suppliers to pass on greater payroll costs.

“An encouraging development in April was a slight
improvement in business activity expectations for the
year ahead. Output growth projections improved to the
highest level so far this year, with a number of survey
respondents citing the prospect of a turnaround in
workloads across the residential building segment.”