Latest News

UK builders most optimistic in two years on rate cut hopes: PMI


UK builders most optimistic in two years on rate cut hopes: PMI By Reuters

Breaking News


Economic Indicators

Published Feb 06, 2024 09:33

© Reuters. People walk past a row of colourful houses in London, Britain, March 19, 2023. REUTERS/Henry Nicholls/ File Photo

LONDON (Reuters) – British construction firms turned their most optimistic in two years as the prospect of interest rate cuts raised hopes of a turnaround in the sector, a survey showed on Tuesday.

The S&P Global/CIPS UK Purchasing Managers’ Index’s headline measure of the construction industry improved to 48.8 in January from 46.8 in December, its highest since August 2023 although still in no-growth territory.

Economists polled by Reuters had forecast a smaller rise to 47.3.

Tim Moore, Economics Director at S&P Global Market Intelligence, said customer demand appeared close to turning a corner as the economy picked up after a weak end to 2023.

“UK construction companies seem increasingly optimistic that the worst could be behind them soon as recession risks fade and interest rate cuts appear close on the horizon,” Moore said.

Construction firms said higher shipping costs pushed up prices paid for raw materials for the first time since last September.

There have been signs in other surveys that disruption to shipping in the Red Sea has delayed deliveries to British manufacturers.

Tuesday’s PMI survey chimed with data from the Royal Institution of Chartered Surveyors, published last week, that showed a brighter outlook for the construction sector.

S&P Global said residential house-building continued to be the biggest drag on activity although the pace of decline was the softest since March last year.

Output in civil engineering was close to stabilisation and commercial building also shrank by less than in December, S&P Global said.

Overall new orders growth showed the slowest rate of decline since they started to contract in August 2023 and employment fell only slightly.

The wider all-sector PMI, which includes previously released services and manufacturing figures, rose to its highest in eight months at 52.6 from December’s 51.7.

UK builders most optimistic in two years on rate cut hopes: PMI

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Futura Medical shares jump 36% after trading update; bank says much further to go

Previous article

Forget Nvidia: These 2 Artificial Intelligence (AI) Stocks Are Still Historically Cheap

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News