UK Construction Sector Shrinks for Ninth Month Amid Budget Fears
The construction sector in the UK continues to face headwinds, with the latest purchasing managers' index (PMI) showing a contraction for the ninth consecutive month. This comes as firms grapple with fears of a tax raid in the upcoming Budget and a subdued sentiment across the sector, according to Tim Moore, economics director at S&P Global Market Intelligence.
The PMI for the construction sector in September stood at 46.2, a slight improvement from August's 45.5 but still below the 50-mark that indicates growth. This persistent contraction has been accompanied by a ninth consecutive month of job cuts in the sector, the longest such period since the pandemic. Firms are being held back by concerns over a potential tax hike by Chancellor Rachel Reeves in the upcoming Budget.
Labour Party's plans to build 1.5 million homes in this Parliament have been met with challenges, with construction employment levels declining. The responsibility for these plans lies with Labour Party politicians and leadership involved in housing policy and planning, though specific names or groups were not identified.
The construction sector's struggles highlight the need for clarity and stability in policy, particularly surrounding the Budget. With employment levels declining and the sector shrinking for the ninth month, addressing these concerns will be crucial for the sector's recovery.
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