The Construction Purchasing Managers' Index (PMI) in the United Kingdom slightly improved in comparison to the month before, but still came in below the 50-point threshold for the second consecutive month, standing at 48.4 in January. S&P Global and Chartered Institute of Purchasing & Supply (CIPS) revealed in a report published on Monday that the figure marked the sharpest fall since May 2020.
House construction was the worst-performing sector of construction activity in January, with the index coming in at 44.8 owing to rising borrowing costs. Meanwhile, civil engineering stood at 49.7, indicating a steady recovery with the figure landing at the highest rate since June 2022.
"Commercial building also slipped into contraction as the subdued UK economy weighed on business investment," S&P Global Economics Director Tim Moore said. However, business expectations reached its highest level for six months "driven by signs of a turnaround in new sales enquires at the start of 2023."
