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UK construction activity tumbles as Iran war pushes up costs, RICS survey shows
S&P Global said input-cost inflation hit its highest since June 2022 as builders reported weaker demand, supply delays and the sharpest job cuts in four months.
- Britain's construction sector shrank at the strongest pace in almost six years in the first quarter, with the Royal Institution of Chartered Surveyors reporting a net workloads balance of-12% as the war in Iran elevated costs.
- Conflict in Iran and shipping delays through the Strait of Hormuz pushed input cost inflation to 81.4 in April, the steepest rise in three decades excluding the post-pandemic period, according to S&P Global Market Intelligence.
- RICS Chief Economist Simon Rubinsohn said rising energy and material costs are squeezing profit margins, leading developers to slow activity and scale back projects as housebuilding expectations flatten.
- April's construction purchasing managers' index fell to 39.7 from 45.6 in March, while sluggish demand prompted businesses to cut jobs at the fastest rate in four months.
- The Bank of England is closely monitoring input prices and company charges to gauge whether inflationary pressures will necessitate increases in borrowing costs, as firms' optimism about future activity remains at five-month lows.
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UK builders hit by surging costs of fuel and materials as output drops
The S&P Global UK construction PMI showed a reading of 39.7 in April, down from 45.6 in March.
·London, United Kingdom
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UK construction activity tumbles as Iran war pushes up costs, RICS survey shows
Activity in Britain's construction sector shrank at the strongest pace in almost six years in the three months to March, according to a survey on Thursday that also showed the war in Iran had increased firms' costs.
·United Kingdom
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Coverage Details
Total News Sources16
Leaning Left3Leaning Right1Center2Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 33%
R 17%
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