Latest data released by Markit/CIPS - 5 August 2021
- Prior 66.3
That's a big fall in construction output as activity eases from the 24-year highs in June to the slowest since February. House-building remains the key pillar driving overall activity but businesses are saying that they are struggling to keep with demand in the construction sector amid raw material supply shortages. Markit notes that:
"July data marked the first real slowdown in the construction recovery since the lockdown at the start of this year. It was unsurprising that UK construction companies were unable to maintain output growth at the 24-year high seen in June, especially with widespread supply shortages and constrained capacity to take on additional orders. The loss of momentum spanned all major categories of construction work and was most pronounced in the house building sector.
"Long lead times for materials and shrinking sub-contractor availability were cited as factors holding back work on site. Around two-thirds of the survey panel experienced longer wait times for supplier deliveries in July, while just 2% reported an improvement since the previous month.
"Another rapid increase in purchasing costs was linked to global supply and demand imbalances, but many firms also noted that local issues had amplified inflationary pressures. These included a severe lack of haulage availability, continued reports of Brexit trade frictions, and greater shortages of contractors due to exceptionally strong demand."
