🏘️ Heightened competition for construction materials and skilled labour is “squeezing the optimism out of builders” despite record UK house prices
Heightened competition for construction materials and skilled labour is “squeezing the optimism out of builders” despite record UK house prices
The latest S&P Global/Cips construction purchasing managers’ index dropped to 52.6 in June, down from 56.4 in May. Tim Moore, economics director at S&P Global Market Intelligence, said: “The gloomy UK business outlook and worsening consumer demand due to the cost of living crisis combined to put the brakes on construction growth in June.
The decline in housebuilding comes despite demand for homes remaining high compared to pre-pandemic, and house prices continuing to climb and breaking previous records, albeit at a slower pace.after rising 9.7 per cent in the year and by 0.3 per cent compared to the previous month, according to separate data by Rightmove.
“We expect this to bring the annual rate of price growth down from the current 9.7 per cent towards the 5 per cent increase that Rightmove predicted at the beginning of the year.”
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