You are viewing 1 of your 1 free articles
Housebuilding boosts UK construction output
UK construction companies experienced a sharp rebound in business activity during May, driven by the fastest upturn in residential work since the end of 2015.
The latest survey by the IHS Markit/CIPS UK Construction Purchasing Managers’ Index showed a “sustained recovery” in new work, following a “soft patch” seen during the first quarter of 2017.
This was underpinned by a sharp uptick in housebuilding, according to the survey, with new business expanding at the fastest rate seen so far in 2017.
Read more
Despite the improvement in new work, construction firms noted that heightened economic uncertainty continued to act as a brake on client spending.
Duncan Brock, group customer relationships director at the Chartered Institute of Procurement and Supply (CIPS), said: “After years of sluggish housebuilding, the construction sector has snapped back into action in May. Construction growth has surged to a 17-month high as the uncertainty caused by the EU referendum appears to be abating.
“The unexpected recovery in construction has been felt most acutely in residential housing as builders finally feel able to respond to demand for new homes.”
Tim Moore, senior economist at IHS Markit and author of the IHS Markit/CIPS Construction Purchasing Managers’ Index, said: “May’s survey data reveals that the UK construction sector has started to recover strongly from its slow start to 2017.
“Housebuilding was the key growth driver, with work on residential projects rising at the fastest pace since December 2015. A sustained rebound in residential building provides an encouraging sign that the recent a 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.”
Related stories
