UK construction activity unexpectedly declined in January for the first time since February 2024 while cost inflation accelerated, according to a closely watched survey published ahead of the interest rate decision.
The S&P Global UK Construction Purchasing Managers’ index, which tracks changes in total industry activity, fell to 48.1 in January, down sharply from 53.3 in December.
It was well below the 53.4 forecast by economists polled by Reuters. It was also, for the first time since February 2024, below the 50 no-change threshold. Numbers below 50 show a contraction in activity.
Tim Moore, economics director at S&P Global Market Intelligence, said: “UK construction output fell for the first time in nearly a year as gloomy economic prospects, elevated borrowing costs and weak client confidence resulted in subdued workloads.”