UK construction suffers as house building hits 2009 lows

Posted on October 6, 2023   |  

The UK's construction industry had a tough month recently, especially in house building, which saw its weakest performance since 2009.

Building projects were reduced because there was less demand for new homes, and borrowing money became costlier.

In September, the construction sector in the UK had its most challenging month since the early days of the pandemic, with less work happening.

The S&P Global/CIPS construction purchasing managers' index, dropped to 45.0 in September from 50.8 in August, surprising many economists.

With reduced activity, suppliers were able to catch up with demand, which could benefit the construction sector when demand picks up again.

The residential building part of the construction industry scored the worst since 2009, except for a period during the pandemic.