UK PMI fell to 3-year low analysts not losing optimism
2023.02.06 07:52
UK PMI fell to 3-year low analysts not losing optimism
By Kristina Sobol
Budrigannews.com – A survey released on Monday revealed that builders have increased their optimism regarding the outlook for 2023, despite the construction industry in Britain experiencing its worst month in almost three years in January due to rising borrowing costs.
The construction industry’s S&P Global/CIPS Purchasing Managers’ Index (PMI) decreased to 48.4 from 48.8 in December, reaching its lowest level since May 2020.
Due to higher interest rates, Britain’s construction industry lost momentum in the second half of 2022. In an effort to deal with the rise in inflation, the Bank of England increased borrowing costs last week to 4%, the highest level since 2008.
The survey conducted on Monday revealed a sharp decline in home construction, as well as declines in civil engineering work and commercial projects.
However, after reaching its lowest point since May 2020 in December, the construction PMI’s gauge of business expectations rebounded to its highest level since July of last year.
Director of economics at S&P Global, Tim Moore (NYSE:) According to Market Intelligence, at the beginning of 2023, some businesses observed concrete signs of a turnaround in new sales inquiries.
He stated, “Other construction companies simply noted gradual improvements in the general economic outlook and hoped that confidence would return at a later stage this year.” Other construction companies also noted the improvement.
The new orders gauge only slightly increased from December’s two-and-a-half-year low, but a measure of input cost inflation edged up slightly.
S&P Global’s all-sector PMI fell to 48.5 in January, its second-lowest reading in two years, from 49.0 in December, which included data on services and manufacturing as well as Monday’s construction number.
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