Buyers report boom in commercial work

Grant Prior 1 year ago
Share

Construction buyers have reported the strongest rise in commercial work in two-and-a-half years.

The booming sector helped drive the bellwether S&P Global UK Construction Purchasing Managers’ Index up to 55.2 in November – up slightly from 54.3 in October – and above the neutral 50.0 threshold for nine months running.

Tim Moore, Economics Director at S&P Global Market Intelligence, said: “The construction sector bucked the slowdown seen elsewhere across the UK economy in November, according to the latest S&P Global PMI survey.

“Total industry activity once again expanded at a robust pace and there has been a clear acceleration in growth compared to that seen in the first half of 2024.

“However, the recovery in construction activity remains somewhat lopsided. Strengthening demand for commercial work and civil engineering projects contrasted with a sustained downturn in house building.

“Commercial construction activity expanded at the fastest pace for two-and-a-half years in November, while residential work declined at the steepest rate since June.

“Elevated borrowing costs and fragile client confidence meanwhile acted as a brake on new order growth in November, with the upturn in sales the slowest for five months.

“A loss of momentum for new work, alongside concerns about rising employment costs, resulted in weaker job creation and falling business optimism across the construction sector.

“The degree of positive sentiment regarding year-ahead growth prospects dropped to the lowest since October 2023. Many construction companies cited concerns about the near-term UK economic outlook and subsequent cutbacks to new projects.”

Latest news

Cheshire M&E specialist Gilks files administration notice

Management tells staff firm will close days before salaries due to be paid
2 days ago

Severfield facing strike action next week

Industrial action to hit Bolton factory
2 days ago

Jackson wins race for £22m East Sussex bridge

Construction set-to start on Exceat Bridge replacement
2 days ago

Plans ramp-up for Wythenshawe £500m town centre revamp

Food hall latest phase of Manchester regen
2 days ago

Kier set to bag £35m Bristol station car park job

Seven-storey MSCP will free up land for homes at Bristol Temple Meads
2 days ago

Leeds £1bn Eastgate Quarter vision moves up a gear

Consultant team assembled for Leeds’ last big city centre site
2 days ago

Morgan Sindall eyes bumper 2026 on record workload

High-flying fit-out arm triggers another profit upgrade
3 days ago

Funding agreed for £220m Paddington overstation job

Mace lined-up to start main construction works next month
3 days ago

Salford set for record £525m wastewater reset

United Utilities alliance firms gear up to deliver twin wastewater works upgrades
3 days ago

Construction grew 1.8% last year despite sharp Q4 fall

Private housing slump behind 2.1% output fall in final quarter
3 days ago

Firms fined after two killed when MEWP overturns

Tragedy during testing of warehouse racking system
3 days ago

Hill bags £45m Kent high-rise flats job

Firm beats rival Higgins and Lovell to Springfield Library redevelopment
3 days ago

Willmott Dixon gets start date for £43m Kent leisure job

Spring start for Gravesend Cascades Leisure Centre
3 days ago

D-Day for £37bn NHS hospital framework

Winners due to be announced imminently for mega deal
4 days ago

Severfield hires ex-ISG finance chief to steer turnaround

New CFO Andrew Page joins at “pivotal time” for steel specialist
4 days ago

Barratt Redrow £1bn safety upgrade works shift up a gear

Nearly 200 blocks now at tender or on site as remediation spend tops £73m in half year
4 days ago

Green light for Liverpool Street Station revamp

Plans approved to upgrade Britain's busiest station
4 days ago

Two arrested after 999 construction fly-tipping call

Rogue waste dumpers caught after lorry gets stuck in field
4 days ago

Barhale secures hat-trick of Thames Water sewer schemes

Firm bags Brent Cross, Benson and Basingstoke development-led sewer upgrades
5 days ago

Skanska seals £273m delayed Broadgate office overhaul

Retained frame and six-storey extension to transform One Appold Street
5 days ago

JRL lands £68m North London housing tower job

Long-stalled Brent 30-floor housing block job moves into delivery
5 days ago

School building winners to give apprentice guarantees

Contractors called on to create 13,000 new training places
5 days ago

DfT tests market for privately financed HS2 Euston station job

Market engagement opens on design, build, finance and maintain deal
5 days ago

Muse go-ahead for 1,600-home Solihull town centre reset

Demolition to start for Mell Square transformation
5 days ago

Subcontractors wanted across the Midlands

Work available at latest Constructionline event
5 days ago

Robertson Construction bounces back into the black

Contractor shakes off previous £13m loss year with £31m profit comeback
6 days ago

Glencar tipped for latest London data centre

Contractor to build next phase of £1bn Brent Cross campus
6 days ago

Muse to lead redevelopment of Wakefield shopping centre

Council moves to demolish The Ridings for 1,000-home quarter
6 days ago

Long-empty Southend HMRC tower set for 557-flat rebirth

Section 106 agreement paves way for construction start
6 days ago

RED starts revamp of Lincoln’s Inn Fields

First phase of refurbishment work at historic London site
6 days ago