UK housebuilding has fallen to its weakest level since the Covid-19 lockdowns of 2020, underlining the scale of the challenge facing ministers as they attempt to revive construction and meet housing targets.
New data from S&P Global shows activity across the UK construction sector continued to shrink in December, with housing and commercial construction work both contracting at the fastest pace in more than four years.
The survey of purchasing managers found that housebuilding and commercial construction declined at their sharpest rate since May 2020, when building sites were forced to shut during the first national lockdown. Civil engineering activity also fell, although at a slower pace than in November.
Overall, the UK construction Purchasing Managers’ Index (PMI) edged up slightly to 40.1 in December, from 39.4 the previous month. However, the reading remains well below the 50 mark that separates growth from contraction, signalling another month of falling activity.
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