Britain’s construction sector contracted for the first time in five months in June due to a fall in residential construction, according to data from a survey by the Chartered Institute of Purchasing and Supply (CIPS) and “Standard & Poor’s Global” (S&P Global). published today and cited by DPA.
The PMI for the UK construction sector fell to 48.9 in June from 51.6 in May.
The fall of the index below 50.0 points is an indicator of contraction of economic activity in the construction sector.
UK housebuilding last month was at its lowest level since May 2020.
Rising mortgage costs due to rising interest rates and the general cost of living continue to deter a number of potential home buyers in the UK, DPA notes.
Meanwhile, the construction sector in Germany continued to contract in June, according to the latest data from a survey by Standard & Poor’s Global (S&P Global).
The rating agency’s leading index of construction contracting activity fell to 41.4 in June from 43.9 in May. The level of the indicator marks the most significant decline in activity in the construction sector in Germany since February 2021.
The increase in the cost of loans due to higher interest rates and the general feeling of uncertainty about the development of the economy limit the demand for real estate and limit construction, DPA and BTA note.
2023-07-06 15:30:00
#Collapse #construction #sector #Germany
