Construction rebound continues in August 2024
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A continued construction rebound in activity throughout August means construction buyers now believe the industry has “turned a corner” after a tricky start to 2024 which was felt by many self employed trades people.
Commercial construction led the way, with an index reading of 53.7, although growth in this segment dipped to its slowest pace since March. Many firms reported a lift in sales enquiries and new orders following the general election.
Civil engineering activity showed moderate expansion at 51.8, though this was a marked decrease from July’s performance.
In contrast, residential construction gained momentum, with growth accelerating to 52.7, its fastest rate since September 2022.
The industry’s optimism is buoyed by strengthening order books and improved sales pipelines, with confidence significantly higher compared to the same period in 2023.
Tim Moore, Economics Director at S&P Global Market Intelligence, commented, “The UK construction sector seems to have turned a corner after a challenging start to 2024, with renewed momentum in house building being the standout development in August.”
Tim Moore, Economics Director at S&P Global Market Intelligence, said: “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 post-election 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.”
