Business activity index is declining in the UK
2022.12.06 04:57
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Business activity index is declining in the UK
Budrigannews.com – According to a survey released on Tuesday, the gloomy economic outlook and high borrowing costs slowed building activity in November, stifling construction activity.
From 53.2 in October, the S&P Global/CIPS UK Construction Purchasing Managers’ Index (PMI) dropped to a three-month low of 50.4, just above the 50 threshold for growth and contraction.
A reading of 52.0 was predicted by an economists’ poll conducted by Reuters.
Civil engineering activity declined while the housebuilding sector remained untouched. Consistent with recession, the survey’s gauge of future activity dropped to its lowest level since the COVID-19 pandemic began.
“Overview respondents noticed that new private structure projects had been reduced because of increasing loan costs, dropped deals and stresses over the financial viewpoint,” said Tim Moore, financial aspects chief at S&P Worldwide (NYSE:), which incorporates the review.
In November, the Bank of England raised interest rates from 0.1 percent a year earlier to 3.3 percent, and it appears likely that it will do so once more this month.
Several indicators of consumer and business price pressure have begun to ease, including Thursday’s survey, as economic demand has decreased.
Input price index for the construction PMI decreased in November to its lowest level since January 2021.
The all-sector PMI, which is based on surveys of the manufacturing and services industries from last week and Tuesday’s construction data, dropped to 48.4 in November from 48.7 in October. This is the lowest level since January 2021, when most of Britain was in a COVID-19 lockdown.
