Proactive Investors - The construction sector returned to growth in July although there remains a divergence in fortunes across the industry, according to a survey.
The S&P Global/CIPS UK construction PMI posted 51.7 in July, up from 48.9 in June, and the highest level for five months.
The increase was led by the strongest rise in commercial building since February and another solid contribution to growth from civil engineering activity.
But, there was another sharp reduction in residential construction activity.
Lower volumes of residential work have now been recorded for eight consecutive months, although the rate of decline eased to its least marked since April.
The sub-index measuring the housebuilding sector picked up to 43.0 from June’s 39.6, still well below the 50-point mark showing stagnation.
July data signalled a renewed expansion of overall construction output in the UK according to the S&P Global / CIPS UK Construction #PMI which posted 51.7 (Jun: 48.9).Read more: https://t.co/NZ0n62rKb6 pic.twitter.com/uql3gciTN7
— S&P Global PMI™ (@SPGlobalPMI) August 4, 2023
Tim Moore, economics director at S&P Global Market Intelligence, said: “July data indicated that some parts of the UK construction sector gained momentum, notably commercial building and civil engineering activity.”
But he noted “around 35% of the survey panel reported a decline in residential work during July, while only 18% signalled a rise."