S&P Global: UK construction expands in Nov. ’24

The UK construction sector showed robust growth in November, with the S&P Global Construction PMI rising to 55.2 from 54.3 in October, marking the ninth consecutive month above the 50.0 threshold for expansion.

Commercial work led the surge, achieving its strongest growth in two and a half years (58.1), supported by improving demand and new tender opportunities. Civil engineering activity also expanded (55.9), albeit at a slower pace.

Housebuilding, however, remained the weakest sector, with an index of 47.9 reflecting its sharpest decline since June. Elevated borrowing costs and fragile consumer confidence weighed heavily on demand.

New order growth eased to a five-month low, attributed to political and economic uncertainty linked to the Autumn Budget.

Employment growth also slowed, with firms citing rising staff and subcontractor costs as constraints. Supplier performance deteriorated to its worst level since February, driven by transport issues and shipping delays.

Despite a continued rise in overall activity, business optimism for the year ahead dropped to its lowest in 13 months, with concerns over the UK economic outlook and rising costs dampening sentiment.

Attribution: S&P Global

Subediting: M. S. Salama