Apparently, increased housebuilding activity has resulted in the UK construction industry being at its highest point for almost a year and a half!
This is according to the UK Construction Purchasing Managers’ Index which found that there was the “strongest expansion of overall business activity for 17 months.”
This is good news after a seventh-month low in May casting doubt upon the industry. However, the latest survey found that the sharp rise in housebuilding was key to driving the industry upwards.
Alongside this, it was also found that residential projects were at their highest too, since the end of 2015. Increased workloads have, in turn, resulted in increased recruitment as well and job creation is at it’s strongest since January. However, one negative though is that imported material prices are continuing to push up input costs.
The author of the Construction PMI and senior economist at IHS Markit stated: “May’s survey data reveals that the UK construction sector has started to recover strongly from its slow start to 2017.”
“A sustained rebound in residential building provides an encouraging sign that the recent soft patch for property values has not deterred new housing supply.”
“Instead, strong labour market conditions, resilient demand and ultra-low mortgage rates appear to have helped boost work on residential development projects in May.”
“Civil engineering continued to flourish, helped by a strong pipeline of infrastructure projects.”
“However, commercial building was trapped in the slow lane amid reports highlighting that heightened economic uncertainty is holding back client spending.”
“The forward-looking elements of the latest survey are reassuring for the construction sector, notably the acceleration in new business growth to its strongest so far this year.”
“On the price front, while construction costs have ratcheted up over the past six to nine months, the wave of inflation from imported materials now appears to have passed its peak.”
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