Overview
- S&P surveys published Thursday showed the UK construction PMI dropping to 39.7 from 45.6 and Germany to 42.1 from 48.0.
- Builders pointed to higher energy, fuel and freight bills tied to the Middle East war, with ships avoiding the Strait of Hormuz and pushing up shipping times and prices.
- In the UK, S&P’s input cost index jumped to 81.4, the highest since June 2022, and firms cut jobs as the employment index slid to its lowest since December.
- Germany’s survey reported the fastest fall in new orders in over a year and the steepest input-cost pressure since May 2022, with housing leading the decline and commercial work also weaker.
- British firms faced the sharpest lengthening of supplier lead times since December 2022, and new orders fell at the quickest pace since November as clients delayed or scrapped projects.