Despite the difficult economic times, construction output increased in September after two months of falling figures. 

According to the S&P Global / CIPS UK Construction Purchasing Managers’ Index, UK construction companies reported a rise in business activity in September at 52.3.

This is higher than the 49.2 recorded in August, and is the first time it registered above 50.0 since June 2022. 

Tim Moore, economics director at S&P Global Market Intelligence, said: “The return to growth was fuelled by delayed projects and easing supply shortages rather than a flurry of new orders.”

He added that delays, supply chain problems, and transport difficulties had improved significantly, which could explain the greater output. 

Dr John Glen, chief economist at the Chartered Institute of Procurement & Supply, suggested things could take a turn for the worst over the next few months, as a result of a “challenging UK economy and recession on the doorstep”.

He noted that supply chain managers said there were reduced levels of buyer activity in September. Indeed, the new orders index dropped to its lowest since the pandemic. 

Despite this, housebuilding recorded 52.9 on the index in September, making it the best performing category. This is also the highest it has been since April. 

According to the Office for National Statistics, work began on 51,370 buildings between April 1st and June 30th, which represents a 21 per cent increase on the previous quarter and a 15 per cent growth from the same period in 2021. 


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