UK construction sector rebounds as uptick in commercial projects offsets housebuilding decline
The UK’s construction sector rebounded in July as an uptick in commercial building and civil engineering work offset sharp falls in residential housebuilding.
The latest S&P Global/CIPS construction purchasing managers’ index scored 51.7 in July, up from 48.9 in June and the highest level for five months.
Any score above 50 indicates the sector is growing, whereas a score below means it is contracting.
Dr John Glen, chief economist at the Chartered Institute of Procurement & Supply (CIPS), said: “Although the sector showed a slight uplift in activity in July, there is a question mark over the sustainability of this growth and the challenges that lie beneath the floorboards.
“Decisions about buying a new home are being delayed by many consumers.
“Another fall in residential building levels and for the eighth month in a row, it’s obvious that UK interest rate rises and cost of living pressures have dealt a hammer blow to the housing sector.
“The commercial and civil engineering sectors remained the only engines of growth last month.”
More to follow
Press Association