Overview
- S&P Global surveys show Britain’s construction PMI dropped to 38.2 in May, signalling a steep fall in building activity, while South Africa’s private‑sector PMI slipped to 49.6, below the 50 expansion threshold.
- Respondents in both countries pointed to higher fuel, energy and transport costs linked to the Iran war as a key reason for fewer contracts and slower site work.
- Supply‑chain delays and longer supplier delivery times forced firms to run down inventories and reduced purchasing activity, which weighed on output in May.
- Businesses passed rising input costs on to customers, with South African firms reporting selling‑price inflation at a 46‑month high, and UK construction companies continuing to cut staff for a 17th month.
- The readings show a wider pattern where some manufacturers have front‑loaded orders but services and construction are weakening, creating policy pressures for central banks and raising the risk of slower growth for workers and small suppliers.