The UK construction sector grew at its fastest pace in more than two years during July, according to new statistics.
The latest S&P Global/CIPS UK Construction Purchasing Managers’ Index (PMI), published on 6 August, rose ‘sharply’ from 52.2 in June to 55.3 in July.
The reading signalled a ‘marked’ monthly expansion in total activity in the sector, extending the recent sequence of growth to five months.
Also, the rate of expansion seen in July, was the fastest recorded since May 2022. All three categories of construction saw activity increase in July.
Work on housing projects returned to growth while commercial activity increased ‘solidly’, the index shows.
New business expanded for the sixth month running and at the ‘strongest’ pace since April 2022, it said.
Success winning new orders was the ‘main factor’ leading to a rise in construction activity at the start of the third quarter, according to S&P’s respondents. Staffing levels increased for the third consecutive month, and at the fastest pace for a year.
The growth in input costs was the ‘joint-fastest’ seen in 14 months, equal with that seen in January, although still at a relatively low level.
Andrew Harker, economics director at S&P Global Market Intelligence, said: ‘The election-related slowdown in growth seen in June proved to be temporary, with the pace of expansion roaring ahead in July.’
