UK August construction PMI 53.6 vs 54.9 expected

• Prior 55.3

The reading is a little softer than in July but still looking good. New order growth continues to be strong while housing activity picked up to rise by its quickest since September 2022. Commercial activity remains the best performing sector but all – including civil engineering – are posting growth, so that about sums up the broad-based strength. HCOB notes that:

“The UK construction sector appears to have turned
a corner after a difficult start to 2024, with renewed
vigour in the house building segment the most notable
development in August. Residential work expanded at
the fastest pace for almost two years as lower borrowing
costs and a gradual recovery in market conditions
helped to boost activity.

“Commercial building was the best-performing part of
the construction sector as the improving UK economic
backdrop resulted in stronger order books, but the postelection bounce in demand faded somewhat in August.

“Another robust expansion of incoming new work was
recorded in August, highlighting that new project starts
are set to support a broader rebound in construction
activity during the months ahead.

“Improving sales pipelines and a turnaround in demand
conditions led to a relatively strong degree of business
optimism across the construction sector. However, some
firms cited a slowdown in civil engineering activity and
concerns about the outlook for infrastructure work as
constraints on growth expectations.”

This article was written by Justin Low at www.forexlive.com.