The new S&P construction PMI, a closely watched survey of around 150 firms, has posted a sharp drop in residential construction activity. How’s that 1.5 million homes pledge going, Angela?
The August PMI of total construction “registered 44.3 in August, down from 44.7 in July and below the neutral 50.0 value for the twentieth successive month. Survey respondents often commented on subdued demand conditions and a reduction in new projects, especially house building starts.” While the government makes housebuilding more expensive…
Tim Moore, Economics Director at S&P Global Market Intelligence, said:
“UK construction companies experienced another solid reduction in output volumes, with a faster downturn in house building the main reason for a weaker overall performance during August. A sharp and accelerated drop in residential activity more than offset slower falls in the commercial and civil engineering sub-sectors.
Sluggish demand conditions and low client confidence, combined with anxiety about the impact of the Middle East conflict, were again factors contributing to lower workloads across the construction sector. Total new business nonetheless decreased to the least marked extent for 11 months amid reports of support from transport infrastructure work and some pockets of vitality such as data centre roll outs and energy sector projects.”
Data centres and energy infrastructure are the only thing propping up activity…
Former Treasury minister and adviser to Burnham in the Makerfield campaign Lord Jim O’Neill, who has turned down a role in his government, said Burnham’s first statement Commons was:
“The last thing investors wanted to hear… gilt yields have risen by a 0.25% in one day, which is a lot. We’ve not had that since Liz Truss days… If your country is under the focus of ‘can they come up with a sensible fiscal strategy’ on a day when the markets think ‘well no, you’re not showing any sign of it’ you’re going to have a tough day…if it stays like this your mortgage rate is going up.”