UK construction output falls at fastest pace in six years

UK construction recorded its fastest output drop in six years, Investing.com Europe reported. The reading points to a clear slowdown in both housing and commercial construction. With Bank of England rates remaining high, mortgage demand has stayed under pressure and several new project starts have been deferred.

Builders and trade groups also cite elevated material costs and shortages of skilled labour as factors. Public-infrastructure schedule slippage tied to the Budget cycle has added strain on the labour market. On the housing side, high rent inflation has continued to cap demand for new construction.

Markets will closely watch the Bank of England's next policy meeting for signals on the rate path. Some analysts say the weak data, set against the government's growth and productivity priorities, may prompt new fiscal moves to support activity.