LONDON, Nov 6 Reuters Growth in activity among British construction firms hit a 10month low in October and housebuilding slowed for the first time since June, according to a survey that underscores the challenge facing the new government that wants to speed up building of homes.
The SP GlobalCIPS UK Construction Purchasing Managers39; Index slowed to 54.3 last month, below September39;s 29month high of 57.2 and lower than economists39; average expectation of 55.5 in a Reuters poll.
Tim Moore, economics director at SP Global Market Intelligence, said some firms delayed decisions ahead of the government39;s first budget last week, despite an improvement in domestic economic conditions which boosted demand.
Government policy uncertainty, fragile consumer confidence and elevated borrowing costs were all constraints on demand for housebuilding projects, Moore said.
SP Global39;s gauge of housebuilding fell to 49.4 from 54.3 in September, the first time since June it has been below the 50 line which indicates growth. Firms attributed weaker demand in part to uncertainty before the budget announcement on Oct. 30.
The Bank of England is expected to reduce interest rates again on Thursday after holding borrowing costs at 5 in September. It made its first cut since 2020 in August.
SP said civil engineering was the strongestperforming category, with infrastructure projects in energy and renewables boosting the sector. But the commercial subsector had its weakest month since…