A sustained rebound in total business activity was recorded across the sector during the month, although the pace of expansion has eased slightly since July.
In an update of the S&P Global UK Construction PMI, a reading of 53.6 was recorded which was above 50.0 for the sixth consecutive month. This was slightly below the 26-month high reading of 55.3 in July.
Momentum was recorded in the residential sector which accelerated to its fastest since September 2022 with a reading of 52.7. This was attributed to improved market conditions and lower borrowing costs. Commercial activity was August’s best performing segment with a reading of 53.7.
Overall, August’s data demonstrated a much stronger rate of expansion than seen on average in the first six months of 2024.
“The UK construction sector appears to have turned a corner after a difficult start to 2024, with renewed vigour in the house building segment the most notable development in August,” said Tim Moore, economics director at S&P Global Market Intelligence.
“Improving sales pipelines and a turnaround in demand conditions led to a relatively strong degree of business optimism across the construction sector. However, some firms cited a slowdown in civil engineering activity and concerns about the outlook for infrastructure work as constraints on growth expectations.”
Elsewhere, August’s data showed staffing levels were broadly unchanged and that sub-contractor usage had decreased for the first time since January.
Purchasing price inflation meanwhile remained relatively muted over August with cost pressures easing since July.
Source: Development Finance
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