UK construction rebounds after General Election
UK CONSTRUCTION rebounded in May, new survey data show, after activity in the sector had fallen to a 22-month low in April.
Markit’s construction purchasing managers’ index, a survey of firms, climbed to a score of 55.9 from April’s 54.2, according to figures published yesterday.
Scores above 50 imply growth, with higher scores signifying quicker growth.
Construction firms said job creation was at a five-month high, and that confidence levels regarding the year-ahead outlook were at their highest since 2006.
“May’s survey provides the first sign of a post-election bounce in the UK construction sector,” said Markit economist Tim Moore.
“However, it is far from certain whether the relief rally in construction confidence will usher in a lasting turnaround in output volumes on the ground.”
Growth in the three main areas of construction – residential, commercial and civil engineering – remains subdued when compared with growth rates seen last year.
“Despite a client spending rebound in May, all three key areas of construction activity have lost considerable momentum over the past 12 months. The scale of the construction slowdown since 2014 is such that it will not be fully reversed through the release of pent-up demand after the election alone.”
Construction output declined by 1.1 per cent during the first three months of the year, according to the latest estimate of GDP from the Office for National Statistics. The sector makes up around six per cent of the economy.