UK house prices: Residential building growing at its slowest rate for two years as the construction sector loses steam
UK housebuilding came off the boil in November, according to new figures published this morning, as the construction sector slowed considerably.
Markit’s purchasing managers’ index showed house building increased at its slowest rate since June 2013.
The overall PMI for the construction sector dropped to a score of 55.3 – its lowest since April, but still above the 50 mark which denotes a contraction.
Construction firms also reported the lowest job growth for over two years.
“Suppliers continued to struggle this month, citing shortages in key materials, supply chain capacity and skilled capability as the causes. But there is a question mark over the coming months as the housing sector, normally the star performer, may drag back on recovery along with the lack of availability of skilled staff,” said David Noble, chief executive at the Chartered Institute of Procurement and Supply.
“Many firms were forced to use more expensive contractors and, further combined with the hoped-for continued job growth failing to materialise, this may leave commentators wondering what’s next.”
However, Noble remains optimistic given the environment of low interest rates and cheap commodity prices.