The bellwether S&P Global UK Construction Purchasing Managers’ Index posted 57.2 in September, up from 53.6 in August and above the neutral 50.0 threshold for the seventh successive month.
The latest reading signalled a strong upturn in total construction activity and the steepest rate of growth for 29 months.
Growth was seen in all sectors with civils the best performing with an index of 59 as contractors highlighted renewable energy infrastructure and a general uplift in work on major projects.
Commercial building (55.2) also gained momentum in September, with output levels rising to the greatest extent since May helped by lower borrowing costs and domestic political stability.
Improving market conditions and rising confidence helped to boost house building in September (54.3). The latest upturn in residential work was the fastest since March 2022.
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.”
