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The UK construction sector is seeing an increasing asymmetrical recovery, according to the latest survey data on Friday, with commercial and civil projects seeing growth, as housebuilding remains in a steep decline.
The UK S&P Global/CIPS construction purchasing managers’ index rose to 51.1 points in April from 50.7 in March. Rising further above the 50-point mark that separates growth from contraction, it shows activity in the sector improved further.
‘The construction sector stretched out its current phase of expansion to three months in April, signalling a modest rebound from the downturn seen at the turn of the year,’ said Tim Moore, economics director at S&P Global.
‘Commercial building work continued to outperform, helped by stabilising domestic economic conditions and a gradual rebound in business confidence. Civil engineering activity was also a driver of construction growth during April, with rising infrastructure work contributing to the best phase of expansion in this segment since the first half of 2022.’
However, the recovery is ‘worryingly lopsided’, Moore contends, given the fifth consecutive fall in residential work.
Further, residential work saw the steepest decline in nearly three years, with respondents citing delays to new house building projects. They also noted softer market conditions amid elevated mortgage rates.
‘On a more positive note, the latest survey illustrated a further slowdown in input price inflation across the construction sector. Softer cost pressures partly reflected a sustained improvement in supply chain performance, with lead-times for deliveries of products and materials shortening to the greatest extent since September 2009,’ Moore added.
The UK construction PMI is compiled by S&P Global from responses to surveys sent to 150 construction companies, with data collected between April 12 to 27.
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