Construction buyers see fastest growth in two years

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The first 6 months of 2024 for tradesmen were basically dire but it looks like we have now turned the corner as the construction buyers reports a massive bounce in June.

With the the bellwether S&P Global UK Construction Purchasing Managers’ Index rose at its fastest rate for 26 months to 55.3 in July from 52.2 in June with all three categories of construction saw activity increase in July as work on housing projects returned to growth after a significant period of stagnation in early 2024.

Large commercial activity increased solidly, but the fastest expansion was seen in civil engineering activity due to large infrastructure projects, where the rate of growth quickened to the sharpest in almost two-and-a-half years which mirrors nationaltradesmen.co.uk job seeking trends.

Success in securing new orders was the main factor leading to a rise in construction activity as new business expanded for the sixth month running at the strongest rate since April 2022.

Andrew Harker, Economics Director at S&P Global
Market Intelligence, commented saying that

The election-related slowdown in growth seen in June
proved to be temporary, with the pace of expansion
roaring ahead in July. Firms saw the strongest increases
in new orders and activity since 2022 as paused projects
were released amid reports of improved customer
confidence.”The strength of demand moved the sector closer
to capacity, bringing a recent period of improving
supplier performance to an end. There were also signs
of inflationary pressures picking up, something that
will need to be watched closely if demand strength
continues in the months ahead.”