- Prior 44.3
That's a slight bounce back after the fall in July, which saw the worst reading in a little over five years. But still, the below 50.0 reading means construction activity and output reflected another notable decline on the month. There were steeper declines observed in residential and civil engineering activity, offset slightly by a slower reduction in commercial building. HCOB notes that:
"Construction activity has decreased throughout the yearto-date, which is the longest continuous downturn since early-2020. August data signalled only a partial easing in the speed of decline after output fell at the fastest pace for over five years in July.
"Sharply reduced levels of housing and civil engineering activity were again the main reasons for a weak overall construction sector performance. Commercial work showed some resilience in August, with the downturn the least marked for three months.
"There were some positive signals on the supply side as vendors' delivery times shortened, subcontractor availability improved and purchasing price inflation hit a ten-month low. However, easing supply conditions mostly reflected subdued demand and a lack of new projects.
"Elevated business uncertainty and worries about broader prospects for the UK economy meant that construction sector optimism weakened in August. The proportion of panel members expecting a rise in output over the year ahead was 34%, down from 37% in July and lower than at any time since December 2022."
