Construction activity falls as inflation takes toll

Construction activity has started to fall as inflation and rising interest rates take their toll on the sector. The latest S&P Global/Cips UK construction Purchasing Managers’ Index showed a fall to 48.9 for July, down from 52.6 the previous month and far below the 52 anticipated by economists. It is the first time since January 2021 that the index had fallen below 50, which indicates a majority of businesses reporting a deterioration in activity compared with the previous month. While the decline was led by a fall in civil engineering projects and housing starts, the commercial segment continued to grow, supported by the reopening of hospitality, leisure and offices. Expectations for the next 12 months, however, have worsened across the board. The FT (£)