Technical Moves Blog

May sees Construction Sector activity growth

The UK construction sector saw activity expansion, based on May data from the seasonally adjusted Markit/CIPS Construction Purchasing Managers’ Index® (PMI®)

The latest report from the PMI published this week shows that while the latest reading pointed to a stronger increase of activity in May, the index remained below the Q1 average. A further rise in new business and the release of previously moth-balled projects supported the latest expansion in UK construction activity.

Furthermore, employment was reported to have increased modestly. Meanwhile, business prospects are expected to improve, with the degree of positive sentiment improving to a one year high.

Of the three broad areas of construction activity monitored by the survey, commercial was the strongest performing for a second month running. House-building expanded after posting a contraction in April, but the rate of increase was below the long-run trend. In contrast, civil engineering saw a reduction in activity for the first time in five months.

Comment:

Sarah Ledger, Economist at Markit and author of the UK Construction PMI® said:
“Construction sector activity grew again in May, with the rate of expansion accelerating slightly since April. Moreover, new order growth was marked, suggesting that increasing levels of output will be sustained.

“Positive sentiment regarding future business activity rose to a one-year high, although concerns over public sector spending cuts continue to weigh on confidence.”

For details of the full report please visit the Markit Economics Website directly: Click Here