Atul Kariya, head of real estate and construction at MHA, which is part of Baker Tilly International, said: “It is hardly surprising that construction PMI activity has fallen as the industry and the economy as a whole are now starting to see the full impact of the proposed tax rises and increased labour costs in the Autumn Budget.
UK construction activity contracts as ‘full impact’ of Budget sets in Activity in Britain’s construction sector fell for the first time in nearly a year last month as housebuilding woes deepened, according to new figures.
Accountancy firm MHA said the construction gloom comes as the “full impact of the proposed tax rises and increased labour costs in the Autumn Budget” is setting in across the sector and wider economy.
Housebuilding activity decreased for the fourth month in a row and at the fastest pace for a year, despite Government moves to pledge policy support to boost the development of new homes, according to the PMI report.
Tim Moore, economics director at S&P Global Market Intelligence, said the marked pullback in construction activity came amid uncertainty over the wider economy and high interest rates.
