The UK construction output has continued to grow, in spite of a decline in housebuilding.
The seasonally adjusted S&P Global / CIPS UK Construction Purchasing Managers’ Index was 51.6 in May, an increase from 51.1 in April.
It is also above the neutral 50.0 for the fourth month in a row, showing that conditions, such as supply chain problems, costs and competition are beginning to stabilise.
This growth was driven by commercial building, which had an index rating of 54.2, and civil engineering (53.9).
In comparison, housebuilding activity was just 42.7, which is the lowest figure for 14 years, not including the drop experienced in May 2020 at the beginning of the pandemic.
Economics director at S&P Global Market Intelligence Tim Moore said: “Rising demand among corporate clients and contract awards on infrastructure projects meanwhile underpinned the fastest rise in new orders since April 2022.”
The report revealed improvements in supply conditions in May, shortening delivery times of construction products and materials. As a result, there were fewer logistical problems.
What’s more, the data revealed the weakest purchasing price inflation rate for over two and a half years.
As a result of this analysis, 45 per cent of those surveyed expect there to be an increase in output levels over the next 12 months.
This comes after a recent report showed construction in Europe is declining, as a result of rising interest rates and costs.
The International Construction Market Survey (ICMS) stated that confidence and investment in the industry has been hit by the global economic crisis.
To keep the British construction sector growing, businesses should invest in KBS building supplies in Charlton so they can continue completing project after project.