The UK’s construction industry has seen a resurgence after six months of decline, with a recent survey indicating growth fueled by a boost in civil engineering and a stabilization in housebuilding. According to S&P Global, the purchasing managers index (PMI) score rose to 50.2 in March, up from 49.7 in February, marking the highest level since August of the previous year.
Tim Moore, economics director at S&P Global, highlighted the positive outlook for the industry, noting improved order books and a rebound in tender opportunities. However, concerns remain around hiring, with a decrease in total employment numbers for the third consecutive month.
Supply chain pressures have also eased, indicating a more favorable environment for construction companies. The recent growth in the construction sector aligns with a similar trend in the manufacturing industry, which returned to growth for the first time in 20 months.
The Competition and Markets Authority (CMA) recently warned of a “persistent under delivery” of new homes in the UK, prompting an investigation into major housebuilders. Despite these challenges, experts like Matthew Pointon from Capital Economics remain optimistic about the future of the construction industry, citing falling interest rates and a gradual rise in construction activity over the next year.
Overall, the latest PMI figures suggest a positive trajectory for the construction sector, with housing construction stabilizing and demand recovering as mortgage rates ease. With signs of improvement in both construction and manufacturing, the UK economy appears to be gradually recovering from the impact of high inflation in previous years.