UK September construction PMI 57.2 vs 53.3 expected

• Construction PMI 57.2 vs 53.3 expected and 53.6 prior.

Key findings:

• Output growth led by steepest rise in civil
  engineering activity since June 2021.
• New orders grow at strongest pace for two-and-a-
  half years.
• Cost pressures intensify in September.

Comment:

Tim Moore, Economics Director at S&P Global Market
Intelligence, said:

“UK construction companies indicated a decisive
improvement in output growth momentum during
September, driven by faster upturns across all three
major categories of activity.
A combination of lower interest rates, domestic
economic stability and strong pipelines of infrastructure
work have helped to boost order books in recent months.

New project starts contributed to a moderate
expansion of employment numbers and a faster rise in
purchasing activity across the construction sector in
September. However, greater demand for raw materials
and the pass-through of higher wages by suppliers led to
the steepest increase in input costs for 16 months.

Business optimism edged down to the lowest since
April, but remained much higher than the low point seen
last October. Survey respondents cited rising sales
enquires since the general election, as well as lower
borrowing costs and the potential for stronger house
building demand as factors supporting business activity
expectations in September.”

This article was written by Giuseppe Dellamotta at www.forexlive.com.