London, May 8, 2024 (Financeflashnews) – Activity in the UK construction sector continued to expand in April, with the pace of growth accelerating sharply to reach the highest level in over a year. This was driven largely by the commercial and civil engineering sectors, according to a survey by S&P Global.
The Purchasing Managers’ Index (PMI) for the UK construction sector rose to 53.0 in April from 50.2 in March. This indicates a significant acceleration in the pace of growth, as a reading above 50 separates growth from contraction. Moreover, April’s growth rate was the strongest since February 2023.
The strongest growth in construction activity was seen in the commercial construction sector, which includes shops, warehouses, and office space. This segment was the fastest-growing of the three monitored areas, returning to growth after 13 consecutive months of decline.
The civil engineering sector also performed well, growing at the strongest pace in nine months. On the other hand, activity in the housebuilding sector fell.
Comment:
The acceleration in UK construction activity in April is a positive sign for the economy. It suggests that the sector is recovering from recent declines and is poised for growth in the coming months.
Key points
- The S&P Global PMI for the UK construction sector rose to 53.0 in April from 50.2 in March, indicating a significant acceleration in the pace of growth.
- The strongest growth was seen in the commercial construction sector, which returned to growth after 13 consecutive months of decline.
- Civil engineering activity also grew strongly, while housebuilding activity fell.
- The acceleration in construction activity is a positive sign for the UK economy, suggesting that the sector is recovering from recent declines and is poised for growth in the coming months.
Additional details:
- The PMI reading for commercial construction rose to 54.9 from 48.7 in March.
- The PMI reading for civil engineering rose to 53.8 from 51.6 in March.
- The PMI reading for housebuilding fell to 47.8 from 48.8 in March.
Sources: S&P Global
