Construction costs rise in the UK and Portugal

Construction costs are rising in both the United Kingdom and Portugal. In the UK, annual inflation for construction materials reached 6.4% in August, up from 5.9% in July. While cement prices saw a slight decrease of 0.8%, fabricated structural steel prices surged by 21.2% compared to the previous year. The UK Construction PMI rose to 46.1, indicating a continued contraction in the sector.

In Portugal, the National Institute of Statistics (INE) reported that new housing construction costs increased by 7.5% year-on-year in August. This rise was driven by a 7.1% increase in material costs and an 8.0% rise in labor costs. Significant price hikes were noted in diesel, copper wire (+30%), and PVC pipes (+20%), alongside various insulation and plumbing components which rose by approximately 15%.