June 9, 2023
According to survey data released by S&P Global on Tuesday, the UK construction sector grew at its fastest rate in three months in May, driven by stronger increases in civil engineering and commercial building activity.
The construction Purchasing Managers’ Index, or PMI, for the Chartered Institute of Procurement & Supply increased from 51.1 in April to 51.6 in May. It was anticipated that the score would stay at 51.1.
A reading over 50 denotes sector development.
The sector of construction with the highest performance in May was commercial building, where output increased at an accelerated and robust rate. The highest growth in 11 months was also seen in the civil engineering sector.
On the other hand, worries about rising interest rates and gloomy market conditions continued to stifle housing development. For the sixth consecutive month, there was a sharp fall in residential construction activity, the sharpest since May 2020.
Despite this slowdown in the housing market, German construction businesses obtained more new business overall than they had in just over a year.
As a result, employment rose for the fourth month in a row. However, the purchasing of inputs mostly remained unchanged.
May saw a significant improvement in supply conditions as the average lead time shrank to its lowest level since August 2009. This improvement was attributed to fewer logistical bottlenecks and better demand-supply balance.
Source: RTT News
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