Growth in the UK construction sector quickened in April, according to the latest purchasing managers’ index survey results from S&P Global.
The headline S&P Global UK construction PMI in April rose to 53.0 in points in April from 50.2 in March.
The reading indicates an expansion of growth, rising further above the 50.0 no-change mark. FXStreet-cited consensus had been expecting a reading of 50.4.
It also marked expansion for the second month in a row, S&P Global said.
‘The construction sector consolidated its recent return to growth in April, with total industry activity rising at the fastest pace for 14 months amid an ongoing recovery in order books. Demand was boosted by greater confidence regarding the broader UK economic outlook. Commercial construction outperformed in April and civil engineering also provided a solid contribution to overall growth,’ said Tim Moore, economics director at S&P Global Market Intelligence.
‘Lacklustre market conditions in the house building segment continued to weigh on activity. The latest survey pointed to the fastest reduction in residential building work since January, although the speed of the downturn remained much softer than in the second half of 2023...’Business activity expectations for the year ahead picked up slightly in April, supported by a sustained recovery in new orders, positive signals for sales pipelines, and anticipated interest rate cuts in the second half of 2024.‘
The construction PMI is compiled by S&P Global from responses to questionnaires sent to survey panels of around 150 construction companies in the UK. Responses were collected in the second half of April.
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