UK Construction Sector Faces Slowdown in December

In a surprising turn of events, the United Kingdom's construction sector experienced a noticeable slowdown in December. The Construction Purchasing Managers' Index (PMI) fell to 53.3, down from November's 55.2, as reported by S&P Global and the Chartered Institute of Purchasing & Supply (CIPS). This decline, which did not meet expectations, was primarily attributed to a reduction in residential work, alongside decreases in civil engineering and commercial building activities.

Tim Moore, Economics Director at S&P Global Market Intelligence, commented on the situation, stating, "The slowdown in overall construction output growth reflected more subdued demand conditions in recent months. Although confidence recovered after a post-Budget slump during November, it was still much weaker than in the first half of 2024. Many firms reported worries about cutbacks to capital spending and gloomy projections for the UK economy."