The construction sector has snapped back into action in May says CIPS
Construction growth rebounds to 17-month high in May, driven by house building says the Chartered Institute of Procurement & Supply (CIPS) in the latest IHS Markit/CIPS UK Construction PMI survey report.
Key findings: Business activity rises at fastest pace since December 2015, Residential work replaces civil engineering as best performing category and Input cost inflation moderates to seven-month low.
Duncan Brock, Director of Customer Relationships at the Chartered Institute of Procurement & Supply, said: “After years of sluggish house building, the construction sector has snapped back into action in May. Construction growth has surged to a 17 month high as the uncertainty caused by the EU referendum appears to be abating.
“The unexpected recovery in construction has been felt most acutely in residential housing as builders finally feel able to respond to demand for new homes. The sector had been held back by the rising cost of raw materials but after months of tense negotiations with suppliers, input prices are starting to stabilise.
“The rapid upturn in production is putting considerable pressure on construction supply chains. Suppliers are struggling to meet demand while there is a growing shortage of contractors to complete work. After the experience of the financial crisis, it may be some time before risk aversion fully recedes and suppliers have more confidence to invest in their capacity. Only time will tell whether we are witnessing a long awaited resurgence in housebuilding.”
Read the latest IHS Markit/CIPS UK Construction PMI survey report in full click here.
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