This is according to the S&P Global UK Construction Purchasing Managers’ Index (PMI) – a seasonally adjusted index  tracking changes in total industry activity. It registered 54.3  in October, down from 57.2 in September. However, the index was above the crucial 50.0 no-change threshold for the eighth month running.

The latest reading was also well above the average seen in the first half of 2024 (51.4) and signalled a solid  expansion of total industry activity.

House building (49.4) was the only broad category of construction work to register an overall decline in output  during October.

This was the first decrease in residential activity since June, but the rate of contraction was only

marginal. Some construction companies noted that elevated  borrowing costs and uncertainty ahead of the Autumn Budget  had constrained demand.

Total new work expanded at a solid pace in October. Mirroring the trend for output growth, the latest expansion was softer than the two-and-a-half year high seen in September. Political uncertainty and subdued household demand due to cost[1]of-living pressures were cited as factors limiting new order  growth in October.

However,  many construction companies noted strong sales pipelines and tender opportunities linked to generally improving domestic economic conditions.

Commenting on the latest data S&P Global Market Intelligence economics director Tim Moore, said: ” October data indicated a decline in overall residential construction activity for the first time since June. Government policy uncertainty, fragile consumer confidence and elevated borrowing costs were all constraints on demand for house building projects.”