Construction Activity Declines Continue, But Pace Slows

The United Kingdom's construction activity fell for the eighth consecutive month in August, although the decline moderated compared to July, according to a release from S&P Global published on Thursday. The Purchasing Managers' Index (PMI) increased from 44.3 in July to 45.5 in August. However, the index stayed significantly below the neutral 50.0 threshold, indicating another sharp drop in overall construction output.

Sector Performance and Employment Trends

Civil engineering was the worst-performing segment during the month, with its PMI registering at 38.1. The report also highlighted that employment figures declined at the fastest rate since May. In contrast, commercial building demonstrated some resilience, posting a PMI of 47.8, while residential work lagged behind at 44.2.

Economic Uncertainty Weighs on Sector Outlook

"Elevated business uncertainty and concerns about the broader prospects for the UK economy led to a weakening of construction sector optimism in August," stated Tim Moore, Economics Director at S&P Global Market Intelligence.