UK Construction activity increases at fastest pace in 26 months

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UK Construction activity increases at fastest pace in 26 months

Growth accelerated in the UK construction sector as the second half of the year got underway, with July seeing much faster increases in both activity and new orders during the month. In turn, firms ramped up purchasing activity and raised staffing levels for the third month running. Higher demand for inputs imparted some pressure on supply chains, and input costs increased at a faster pace.The headline S&P Global UK Construction Purchasing Managers’ Index™ (PMI®) – a seasonally adjusted index tracking changes in total industry activity – rose sharply to 55.3 in July from 52.2 in June. The reading signalled a marked monthly expansion in total activity in the construction sector, extending the current sequence of growth to five months. Moreover, the rate of expansion was the fastest since May 2022.All three categories of construction saw activity increase in July as work on housing projects returned to growth. Commercial activity increased solidly, but the fastest expansion was seen in civil engineering activity, where the rate of growth quickened to the sharpest in almost two-and-a-half years. According to respondents, success in securing new orders was the main factor leading to a rise in construction activity at the start of the third quarter. New business expanded for the sixth month running, and at a marked pace that was the strongest since April 2022. Alongside a general improvement in market demand, there were also reports that customer confidence had strengthened, making them more willing to release previously paused projects.Rising workloads led construction firms to expand both their purchasing activity and employment more quickly in July. Staffing levels were up for the third consecutive month, and at a solid pace that was the fastest for a year. Meanwhile, a strong rise in purchasing activity was the most Activity rises amid much faster increase in new orders.view PMI report

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