Bounceback for builders as output hits five-month high as new projects and high volumes of unfinished work push construction industry forward
- Commercial construction outperformed, while residential construction also expanded
Builders recovered in October as production hit a five-month high.
Construction firms in Britain noticed a slump over the summer as rising prices and concerns about the economy hampered buying activity.
But due to the start of new projects and the large amount of unfinished work, the construction sector’s position on S&P Global’s Purchasing Managers’ Index (PMI) rose to 53.2.
Storm clouds: UK construction firms saw a slump over the summer as rising prices and concerns about the economy hampered buying activity
This was above the crucial 50 reading, which marks no change, and the highest since May.
Non-residential construction performed best, while residential construction also expanded. Civil engineering fell for the fourth straight month.
But there were still storms over the sector as business expectations plunged to a 29-month low.
Companies said weaker customer confidence, rising materials prices, higher borrowing costs and a decline in work due to political uncertainty were all holding back activity.
Higher costs were “overwhelmingly linked” to utility bills, fuel and rising wages, S&P added.