Index shows fall in residential building work amid ‘elevated borrowing costs’

Housebuilding activity fell in April by the steepest amount for three months, according to a bellwether index.

The S&P Global/CIPS UK construction Purchasing Managers’ Index shows housebuilding was at 47.6 in April. Any reading below 50 indicates an overall contraction of output.

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It said: “The latest survey signalled a setback for house building activity (index at 47.6). April data pointed to a moderate fall in residential building work, although the rate of decline was the steepest since January.

“Construction companies again noted sluggish market conditions and the impact of elevated borrowing costs.”

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The fall in residential comes despite construction output overall increasing from 50.2 to 52 month-on-month.

Commercial and civils posted a score of 53.9 and 53.6 respectively to more than offset the slower housing output.

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