(Alliance News) - The UK construction sector slipped into decline at the start of the year, snapping a 10-month growth stretch as economic uncertainty weighed, a survey on Thursday showed.
The S&P Global construction purchasing managers' index slumped to 48.1 points in January, from 53.3 in December.
It was the first time in 10 months that the index has slipped below the 50 point mark that separates growth from decline.
"Construction companies cited delayed decision-making by clients on major projects and general economic uncertainty had weighed on business activity at the start of 2025. A number of firms also commented on the impact of subdued market conditions in the residential building sector," S&P Global said.
"January data pointed to a decline in incoming new work for the first time in 12 months. Although only modest, the rate of contraction was the steepest since November 2023. Anecdotal evidence suggested that a lack of confidence among clients and worries about the UK economic outlook had contributed to fewer sales enquires."
Input costs saw the loftiest rise since April 2023, S&P Global said.
S&P Global added: "Finally, around 38% of the survey panel predict a rise in business activity over the year ahead, while only 17% forecast a reduction. However, this pointed to the lowest degree of business optimism since October 2023. Survey respondents cited a post-budget dip in confidence among clients, alongside weakening sales pipelines and the impact of lacklustre domestic economic conditions."
The survey features a panel of 150 construction firms, with responses collected in the second half of the month.
By Eric Cunha, Alliance News news editor
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