UK construction sector surges in July – PMI

The UK construction sector experienced accelerated growth in July, with the headline S&P Global UK Construction PMI rising to 55.3 from 52.2 in June.

This marks the fastest expansion since May 2022, driven by increased activity across all construction categories, especially civil engineering.

The growth was supported by a surge in new orders and improved customer confidence, leading firms to boost both purchasing and staffing levels.

Despite stronger demand putting some pressure on supply chains and causing a rise in input costs, the sector remains optimistic about future expansion, with over 53 per cent of respondents expecting increased activity over the next year.

“The election-related slowdown in growth seen in June proved to be temporary, with the pace of expansion roaring ahead in July. Firms saw the strongest increases
in new orders and activity since 2022 as paused projects were released amid reports of improved customer confidence.” Andrew Harker, Economics Director at S&P Global Market Intelligence, said.
“The strength of demand moved the sector closer to capacity, bringing a recent period of improving supplier performance to an end. There were also signs of inflationary pressures picking up, something that will need to be watched closely if demand strength continues in the months ahead.”

Attribution: S&P Global UK Construction PMI®