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The UK construction sector growth weakened in September with the output rising to the smallest extent for eight months amid supply chain issues and softer demand, data published by IHS Markit showed on Wednesday.

The Chartered Institute of Procurement & Supply construction Purchasing Managers’ Index fell more-than-expected to 52.6 in September from 55.2 in August. The expected level was 54.0.

The index signaled the weakest speed of recovery for eight months. Nonetheless, a reading above 50.0 indicates expansion.

All three broad categories of construction activity reported a loss of momentum in September, with the biggest slowdown seen in civil engineering.

House building also decelerated in September, with the latest expansion the weakest since the recovery began in June 2020. The commercial segment was the best performer.
The survey showed that construction companies logged a moderate increase in new work in September. Output growth eased for the third straight month.

There was another strong rise in employment numbers across the construction sector, driven by greater workloads and stretched business capacity. But the pace of growth eased in September.

The rate charged for sub-contracted works increased at a survey-record pace. Purchase prices increased rapidly in September, although the rate of inflation eased further from June’s all-time peak.

Construction firms remained highly upbeat about the business outlook in September. However, the degree of confidence was weaker than August amid some concerns that the supply chain crisis will hinder growth.


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