PwC comments on the S&P Global / CIPS July UK Construction PMI
04 Aug 2022
Toby Banfield, Financial Restructuring Partner at PwC, reflects on the July PMI Construction Index, released today:
“July’s results continue to follow the downward trajectory of the Index over the first half of the year. Smaller, privately owned contractors typically increased their financial leverage during the pandemic. However, with cash now very tight due to a period of rising interest rates, high material prices and increasing labour inflation, these businesses are feeling the impact of the current economic environment.
“We are finding that our clients across the supply chain are most worried about how smaller, privately owned contractors are going to be able to manage through the current trading environment. Due to these circumstances, we are seeing suppliers reducing credit terms offered to contractors, which may be reflected in the lower levels of stock building reported in the July figures.”
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