UK construction activity grew for the fourth consecutive month in June, according to a leading metric.
The industry registered activity of 52.2 on the S&P Global UK Construction Purchase Manager’s Index (PMI) last month – above the no-change mark of 50.
S&P said the reading “signalled a sustained improvement in overall construction activity in the UK, albeit with the pace of growth softening from the previous month”.
The data provider said that commercial work drove the increased construction activity, while civil engineering also saw an uptick.
However, housing activity decreased again in June, after rising for the first time in 19 months in May.
Construction companies responded to increased growth by employing staff, with the rate of job creation at its highest since August 2023.
Andrew Harker, economics director at S&P Global Market Intelligence, said: “Continued growth of the UK construction sector in June meant that the sector has recorded sustained expansion throughout the second quarter of the year.
“While there were signs of a slowdown in the latest survey period, most notably around housing activity, firms indicated that a slowdown in new order growth was in part related to election uncertainty.
“We may therefore see trends improve once the election period comes to an end. Moreover, confidence in the year ahead outlook remained strong and firms increased employment to the largest extent in 10 months.”
Fraser Johns, finance director at Beard, said: “Such is the UK construction sector’s continued growth, even renewed challenges in housebuilding – which can often have a dragging effect on output as a whole – wasn’t enough to halt its expansion.
“Inflationary pressures easing and encouraging supply chain conditions are all helping to drive momentum and increase confidence for the second half of the year.
“It comes as no surprise to us at Beard to see the commercial sector moving the needle, with persistent demand across our five regional offices and from both national and regional frameworks. Once we have the results of today’s election and the dust settles, we can certainly expect to see more clients push ahead with plans.”
Jordan Smith, technical director at Thomas & Adamson, part of Egis Group, said: “Today’s Construction PMI figures build on last month’s upturn.
“But softening growth reflects what we’re seeing on the ground in terms of continuing materials shortages, an improving but still tight labour market, and limited supply chain capacity driving prices up – albeit not to the same degree as a year ago.”
