UK construction activity falls to a six-month low as housebuilding continues to drag on the overall sector. Total new jobs were seen rising at the slowest pace since June but at least business optimism lifted after hitting a 13-month low in November. S&P Global notes:
“December data indicated a significant loss for construction output growth, with all three major sectors of activity posting weaker performances than in the previous month. Commercial real estate maintained its position as the fastest growing area of construction activity. was growing, followed by civil engineering, in contrast, residential employment declined for the third month in a row and at the fastest pace since June 2024.
“The slowdown in overall construction output growth reflected softer demand conditions in recent months, as evidenced by further change in new order growth in December.
“Hiring picked up since November, but there were signs of tight supply conditions. Access to subcontractors improved to the smallest level since March 2023, and the rates they were building rose at the fastest pace for just over one and a half. years.
“Concerns about the demand outlook weighed on construction sector growth expectations for 2025. Although confidence recovered from a post-Budget slump in November, it was still much weaker than in the first half of 2024. Many companies reported concerns about cuts to capital spending and gloomy forecasts for the UK economy.”
