Indicators

UK Construction Material Costs Slide at Fastest Pace in 14 Years

  • Sharp slump in housebuilding drives drop in activity
  • Cost and supply chain pressures ease with slower demand

New build houses at a development under construction in Wakefield, UK.

Photographer: Dominic Lipinski/Bloomberg
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UK construction companies reported the sharpest drop in the cost of building materials in 14 years, adding to signs that a more sluggish economy is starting to ease inflationary pressures.

S&P Global’s construction purchasing managers edged up to 45.6 in October from 45 the previous month, remaining well below the threshold of 50 indicating a contraction. October’s reading was the second-worst since the first Covid lockdown.