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UK construction sector grows at fastest speed in years

Published 06/08/2024, 11:55
© Reuters.  UK construction sector grows at fastest speed in years
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Proactive Investors - Britain's construction sector experienced its fastest growth rate in more than two years last month, according to the latest PMI figures.

The S&P Global UK Construction PMI increased to 55.3 in July from 52.2 in June, remaining above the 50 mark that separates growth from contraction for the fifth consecutive month.

It was also significantly ahead of the 52.4 that the markets had predicted.

With the rate of expansion in output at the fastest since May 2022, construction firms are strongly optimistic that activity will continue to expand over the coming year.

The FTSE 100 failed to react positively to the release despite the good forecasts and is currently trading close to flat following Monday's whacking.

Andrew Harker, economics director at S&P Global, said: "The election-related slowdown in growth seen in June proved to be temporary, with the pace of expansion roaring ahead in July.

"The strength of demand moved the sector closer to capacity, bringing a recent period of improving supplier performance to an end.

"There were also signs of inflationary pressures picking up, something that will need to be watched closely if demand strength continues in the months ahead."

Read more on Proactive Investors UK

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