UK construction activity contracted much more than expected and at the fastest pace for more than five years in October, as clients delayed decision making amid high political uncertainty, according to a closely watched survey.
The S&P Global UK construction purchasing managers’ index fell to 44.1 in October, down from 46.2 in September and below the 50 mark, which separates contraction from expansion, for the tenth consecutive month — the longest period of continuous decline since the global financial crisis.
The figure was the lowest since May 2020 and well below the 46.7 forecast by economists polled by Reuters.
The data comes as policymakers at the Bank of England prepare to announce their decision on interest rates, as they attempt to strike a balance between bringing down inflation and supporting growth.