UK May construction PMI 54.7 vs 52.5 expected

• Prior 53.0

It’s all looking good for the UK construction sector, with another increase in overall activity seen in May. That owes to a further rise in new orders but there are also further improvements in other areas like employment and purchasing. That’s a good sign at least in this part of the economy. S&P Global notes that:

“The UK construction sector looks to be building
good momentum as we approach the middle of 2024,
highlighted by activity increasing at the fastest pace
in two years during May. Particularly pleasing was the
broad-based nature of the rise in activity as work on
housing projects increased for the first time in more
than a year-and-a-half.

“Firms are gearing up for further growth in the months
ahead, posting renewed expansions in both employment
and purchasing activity as workloads increase.

“Moreover, the supply-chain environment continued to
improve in May. Companies were able to secure inputs
much more quickly than in April and at prices that
were only slightly higher than in the previous month on
average. These factors should help constructors in their
efforts to ramp up operations in line with greater new
order inflows.”

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