Proactive Investors - UK construction output grew at the fastest rate in two-and-a-half years last month, S&P Global reported on Friday.
S&P’s construction purchasing managers index climbed from 53.6 to 57.2 in September, marking the strongest upturn since April 2022 and a seventh successive month of growth.
Robust demand for renewables saw civil engineering represent the fastest-growing sub-sector, while momentum also built across commercial construction and housing.
“A combination of lower interest rates, domestic economic stability and strong pipelines of infrastructure work have helped to boost order books in recent months,” S&P economics director Tim Moore commented.
“New project starts contributed to a moderate expansion of employment numbers and a faster rise in purchasing activity across the construction sector in September.”
However, the uptick in demand for raw materials and the pass-through of higher wages was said to have seen input costs climb at the fastest pace in 16 months.
Optimism was also seen at its lowest since April, though Moore noted this was higher than a year ago as lower borrowing costs aided expectations for a boost in house building ahead.