Breaking News: British Construction Growth Slows in June Amid Election Uncertainty
In a recent survey, it has been revealed that growth in British construction activity has slowed down in June, mainly due to a decline in house-building. The S&P Global UK Construction Purchasing Managers' Index fell to 52.2 in June from 54.7 in May, below the expected forecast. This slowdown is attributed to firms adopting a wait-and-see approach ahead of Britain's national election on July 4th.
Despite the slowdown, new orders continued to grow, albeit at a slower pace than before. Commercial construction and civil engineering saw a rise in activity, but residential building work experienced a decline. The survey also reported an increase in employment, with the rate of job creation being the fastest since August last year.
The Bank of England, which is closely monitoring wage growth and services costs, is considering cutting interest rates this year. The cost of some raw materials increased last month, although pressure on supply chains eased.
Overall, the all-sector PMI dropped to 52.3 from 53.1 in May, mainly due to slower growth in the services sector. Analysts predict that trends may improve post-election period. Stay tuned for more updates and analysis on the financial market trends.