The Markit/CIPS UK Construction Purchasing Managers’ Index® (PMI®) reached 62.6 in June on a seasonally adjusted basis. This is an improvement on May, which was at a 7-month low at 60. It also represents the fastest expansion in construction activity since February 2014.
New work and housing activity both grew at the greatest pace since January, while commercial building activity rose the most it has done in 5 months. UK construction companies experienced an increase in staffing levels as job creation grew at the fastest pace since the survey began in 1997. However, civil engineering activity growth began to slow in June, resulting in its lowest rise since September 2013.
“UK construction companies started the summer with another surge in house building and commercial activity, which helped to offset a slight moderation in civil engineering growth as temporary projects related to flood relief came to completion,” said Tim Moore, Senior Economist at Markit and author of the Markit/CIPS Construction PMI®. “The latest survey suggests that the UK construction sector has expanded by more than 1% over the second quarter of 2014, driven by improvements in the underlying health of the UK economy, favourable funding conditions and robust increases in new housing starts.”
Adapted from Markit/CIPS release by Louise Fordham