UK construction firms hit by sharp cost rises linked to Iran war
UK construction firms are facing some of the sharpest cost rises in nearly 30 years, according to a survey that links the increase to the war in Iran.
The report says higher fuel and raw material prices are feeding through into the sector.
The monthly survey found input cost inflation rose in April to its highest level since June 2022, when commodity prices spiked after Russia's invasion of Ukraine.
It said the latest rise in purchasing prices was one of the steepest since the survey began in 1997.
The construction purchasing managers' index fell to 39.7 in April from 45.6 in March, its lowest level since last November.
Readings below 50 indicate contraction, and the index has not shown growth since January last year.
The sector is a major part of the UK economy, accounting for about 7% of GDP and employing more than two million people.
The report said the Middle East conflict is adding to business uncertainty at a time when construction has already been affected by subdued demand, an ageing workforce and higher costs.
Tim Moore, economics director at S&P Global Market Intelligence, said about two-thirds of companies surveyed reported higher cost burdens in April.
