As expected, the headline CIPS construction index retreated in November as falling demand outweighed the benefit of easing prices and an increase in the availability of contractors. As the recession takes hold and occupier demand sees further falls, the construction PMI will fall below 50 as investors delay starting new projects and lenders tighten their credit standards. That is consistent with our view that newbuild home volumes will see a sharp decline over the next couple of years.
In view of the wider interest we are also sending this UK Commercial Property Data Response to clients of our UK Housing Market Service.
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