UK housebuilding is at its lowest since May 2020, yet the construction industry as a whole is expanding

UNITED KINGDOM: In April, UK housebuilding activity fell at the fastest rate in nearly three years, owing to weaker demand and rising borrowing rates. (Reported by news source)

The entire construction sector, however, expanded further as the loss in the residential market was compensated by increased commercial and civil engineering activity.

The latest S&P Global/CIPS construction purchasing managers' index was 51.1 in April, up from 50.7 in March. Any score below than 50 indicates a deterioration, while anything higher indicates growth.

Civil engineering activity was also a driving force behind April construction growth, with growing infrastructure work contributing to the greatest phase of expansion in this area since the first half of 2022." Commercial construction was the fastest-growing industry, with a reading of 53.9, as firms stated that improved economic conditions increased clients' willingness to spend.

Companies cited project delays as well as the impact of softer market conditions and increased mortgage rates as a result of interest rate increases.