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    Home ยป Shortages of Materials and Labor SlowDown UK Construction Recovery in September
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    Shortages of Materials and Labor SlowDown UK Construction Recovery in September

    October 6, 20211 Min Read
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    September data revealed another expansion slowdown in the construction sector, with output volumes increasing to the smallest degree for eight months.

    • A rapid decline in sub-contractor availability was recorded in September. Imbalanced demand and supply led to the steepest increase in sub-contractor charges since the survey started in April 1997.
    • At 52.6 in Sept., down from 55.2 in August, the headline seasonally adjusted IHS Markit/CIPS UK Construction PMI Total Activity Index fell further below the 24-year record high posted in June.
    • The latest reading indicated only a moderate expansion of total construction output and the weakest rate of recovery for eight months. Respondents linked the slowdown to a mix of supply chain issues and softer demand.
    • All three major categories of construction activity posted a loss of momentum in September, with the biggest slowdown recorded in civil engineering.
    • House building also decelerated in the month, the latest expansion the weakest since the recovery started in June 2020(52.8). This left the commercial segment (53.6) as the best performing category.

    Construction companies posted a moderate increase in new work during September, with the pace of growth easing sharply to its weakest since the start of 2021.

    FTSE 100 down -1.55%, GBP USD down -0.47%Source: IHS Markit.

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