The latest S&P Global UK Construction PMI survey has signalled a setback for house building, with April data pointed to a moderate fall in residential building work, although the rate of decline was the steepest since January. Construction companies again noted sluggish market conditions and the impact of elevated borrowing costs.

In the construction sector generally, new business volumes increased for the third successive month in April, although the rate of expansion eased since  March and was only modest. Those reporting higher new order intakes typically cited improved client confidence, particularly in the commercial segment.

S&P Global Market Intelligence economics director Tim Moore commented: “Lack lustre market conditions in the house building segment continued to weigh on activity. The latest survey pointed to the fastest reduction in residential building work since January, although the speed of the downturn remained much softer than in the second half of 2023.