Construction firms hit by rising costs

RISING costs and economic worries started to restrict growth in the UK’s construction sector last month, but businesses are still expanding, new data show.

An influential survey found that the increased prices that companies are paying for energy, fuel and raw materials led to cost inflation hitting its highest since last September.

The S&P Global/CIPS construction purchasing managers’ index (PMI) survey gives the sector a score each month. If the score is over 50 the sector is considered to be growing, while under 50 is considered contraction.

After two months at 59.1, the index posted a drop to 58.2 in April.

“The construction sector is moving towards a more subdued recovery phase as sharply rising energy and raw material costs hit client budgets,” said Tim Moore, economics director at S&P Global.

“House building saw the greatest loss of momentum in April, with the latest expansion in activity the weakest since September 2021.”