UK construction industry shrinks as recession looms

Builders report customers are putting new work on hold as inflation reaches 40-year high

Building firms suffered a squeeze on activity for a second month in a row during August as new orders slowed to their lowest level since the summer of 2020 in the latest sign that a UK recession is looming.

With inflation at a 40-year high, construction businesses reported that their customers were putting new work on hold, forcing them to stop buying materials and hiring staff.