UK’s Construction Industry Stages Strongest Growth in 14 Months

The UK construction industry witnessed its fastest growth in over a year this April, even as the housing sector continued to decline, according to a survey released on Tuesday. The S&P Global UK Construction Purchasing Managers' Index (PMI) rose to 53.0 from 50.2 in March, marking the quickest expansion since February 2023.

This growth is indicative of an economic recovery from recession, despite the ongoing downturn in the housing sector. Recent house price surveys have suggested a slowdown in the recovery of the housing market.

The PMI survey showed a significant increase in commercial work and civil engineering, while the decline in the housing sector worsened in April. "Demand was boosted by greater confidence regarding the broader UK economic outlook," said Tim Moore, economics director at S&P Global.

However, the survey also indicated a fourth consecutive contraction in employment among construction firms, although it was the shallowest contraction in three months. The all-sector PMI, which includes last week's surveys for the services and manufacturing sectors, as well as construction, rose to a one-year high of 54.0 in April from 52.6 in March.

These findings align with other business surveys suggesting that Britain's economy returned to modest growth in early 2024 after its shallow downturn in the final two quarters of the previous year.