S&P Global / CIPS UK Construction PMI Report shows a mixed but positive outlook for construction

The latest S&P Global / CIPS UK Construction Purchasing Managers' Index (PMI) report shows a return to growth in construction output in July, shorter lead times on materials and higher employment. However, there are still areas for concern within the industry. The report shows that, following a marginal decline in output in the previous month, July saw an overall increase. This was driven by the biggest rise in commercial building since February and growth in civil engineering work. However, interest rate rises and the cost of living has impacted the housebuilding sector for the eighth month in a row. The S&P / CIPS data also shows that easing demand and a reduction in supply bottlenecks contributed to the fastest improvement in supplier delivery times since March 2009. However, higher inflation and wage costs continued to increase purchase prices. In positive news for the construction industry, recruitment showed improvements in July with job creation rates at their strongest since October 2022. The factors behind this include better availability of suitable candidates and the long-term expansion plans of businesses. Furthermore, firms' expectations for work over the next twelve months remained positive and increased slightly compared with previous months.

For more information, read the full report summary.