DAVY VIEW

Yesterday’s (October 5th) UK Construction PMI fell to 45.0 in September, which pointed to an abrupt contraction in activity led by a slump in residential activity (38.1). Firms pointed to the weak housing market, higher interest rates and economic uncertainty weighing on demand. Hence, new orders fell at their sharpest pace in three years. On balance, firms were still positive that output will likely expand over the next 12 months, although the degree of business confidence fell back to its weakest level since December 2022.