British construction firms experienced one of the sharpest monthly increases in cost inflation on record in April, according to the latest survey from S&P Global.
The UK Construction Purchasing Managers’ Index (PMI) measure of input cost inflation surged to 81.4 from 70.5 in March — its highest level since June 2022 and the second-largest month-on-month increase since records began in 1997.
The broader construction PMI, which tracks overall activity, fell sharply to 39.7 from 45.6, marking its weakest reading since November and coming in below economists’ expectations.
Around 69% of firms surveyed reported rising input costs during April, compared with 48% the previous month, highlighting the scale of inflationary pressure spreading across the sector.
Tim Moore, economics director at S&P Global Market Intelligence, said the latest rise in purchasing costs was the steepest seen outside the post-pandemic inflation shock between 2021 and 2022.
The survey also pointed to worsening supply chain disruption linked to the Iran conflict, with contractors reporting longer delivery times, higher transport costs and increasing difficulty sourcing materials.
The data adds to growing concern across the UK construction industry, where firms are already facing pressure from elevated borrowing costs, regulatory delays and weakening market confidence.