Construction growth rebounds to 17-month high

Grant Prior 2 years ago
Share

Construction buyers have reported business rising at the fastest rate for 17 months.

The latest Markit/CIPS UK Construction Purchasing Managers’ Index rose to 56 in May – up sharply from April’s figure of 53.1.

Soaring residential workloads and sustained growth in civil engineering where the main drivers.

And their was more good news as material price inflation bottomed-out to a seven month low.

Tim Moore, Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI, said: “May’s survey data reveals that the UK construction sector has started to recover strongly from its slow start to 2017.

“House building was the key growth driver, with work on residential projects rising at the fastest pace since December 2015.

“A sustained rebound in residential building provides an encouraging sign that the recent soft patch for property values has not deterred new housing supply.

“Instead, strong labour market conditions, resilient demand and ultra-low mortgage rates appear to have helped boost work on residential development projects in May.

“Civil engineering continued to flourish, helped by a strong pipeline of infrastructure projects.

“However, commercial building was trapped in the slow lane amid reports highlighting that heightened economic uncertainty is holding back client spending.

“The forward-looking elements of the latest survey are reassuring for the construction sector, notably the acceleration in new business growth to its strongest so far this year.

“On the price front, while construction costs have ratcheted up over the past six to nine months, the wave of inflation from imported materials now appears to have passed its peak.”

Latest news

Two workers killed on John F Hunt demolition site

Victims worked for demolition specialist and Nationwide Platforms
2 days ago

Galliford Try signs two major road deals worth £435m

Biggest contracts so far by Highways Agency Regional Delivery Partnerships framework
2 days ago

Yorkshire Water reveals winners of £1bn civils deal

18 contractors win places on AMP7 programme: Full list
3 days ago

Plan for Salford’s tallest skyscraper

Hong Kong developer unveils residential tower plan for Greengate area
3 days ago

London developer commits to zero carbon buildings by 2030

Great Portland Estates aims for zero carbon offices in 10 years
3 days ago

United Living hails record results

Social housing contractor eyes build to rent sector
3 days ago

Balfour Beatty starts tunnelling at Hinkley Point

Firm starts first of three underground tunnels for cooling water
3 days ago

Director sentenced after worker impaled on spike

Court hears how defective lorry loader crane caused horror injury
3 days ago

Kier plunges to £245m loss

Kier chief Andrew Davies says core business is in good shape as recovery plan advances
4 days ago

Construction Manager of the Year crowned

CIOB to review awards after all 80 finalists this year were men
4 days ago

Lovell signs deal to build 4,000 West Midlands homes

Lovell Partnerships to build homes on brown field land over next eight years
4 days ago

Engineer killed working on Waterloo Station travelator

Fatal accident during maintenance work at underground station
4 days ago

Chain fails during crane lift on Robertson hotel site

Lifting operations suspended at site by contractor
5 days ago

Caddick lands £10.7m first phase of Cheshire business park

Developer Chancerygate awards its largest ever contract
4 days ago

HS2 presses ahead with £3.5bn phase 2a bidders day

October bidders day for design and delivery partner and seven civils packages on West Midlands to Crewe route
5 days ago

Public inquiry into hospital construction problems

Patient concerns lead to probe into two Multiplex hospital jobs
5 days ago

BAM wins £20m Leeds business school block

Work will start in November on six-storey block for Leeds University
5 days ago

McLaughlin & Harvey lands Liverpool2 phase 2

£20m contract to expand deep water container terminal
5 days ago

Potash mine cash crisis forces construction slowdown

Developer has six months of cash left for construction
6 days ago

Investment bank to build 13-storey tech tower in Glasgow

Construction to start next year on new 270,000 sq ft building for JPMorgan Chase
5 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
1 year ago

Third contractor to finish jinxed school job

Local contractor Feltham Construction to complete Newbury school project
6 days ago

Aberdeen hospital project cost review as price soars

Graham final tender price reported to be 20% above original cost estimate
6 days ago

Sisk confirmed for £70m York Central civils

Firm will work up designs for a bridge, spine road and National Rail Museum rail link
6 days ago

Aldi plans new supermarket every week

840-store network to be expanded to 1,200 by 2025
6 days ago

Morrison to build £63m innovation hub in Kilmarnock

HALO to be build business centre on former home of Johnnie Walker whisky
6 days ago

Shapps halts woodland clearance during HS2 review

Transport secretary says woodland removal must wait for Oakervee review outcome
6 days ago

£800m Fawley oil refinery expansion to start this year

Ultra-low sulphur diesel plant will employ 800 during construction
6 days ago

Watkin Jones gets go-ahead for Leicester waterside scheme

Mixed student and rental flats scheme at Bath Lane approved
6 days ago

Balfour and Vinci JV signs £1bn HS2 station deal

Contract awarded while procurement challenge continues
6 days ago

Contractor services