The bellwether S&P Global UK Construction Purchasing Managers’ Index rose to 54.7 from 53.0 in April – the fastest rate growth rate in two years.
For the first time since May 2022, all three monitored categories of house building, commercial and civil engineering saw activity increase.
New business rose for the fourth consecutive month, and at a solid pace that was the fastest for a year as demand conditions improved. Firms linked higher new orders to the winning of new contracts and the commencement of previously delayed projects.
Business confidence increased to a three-month high in May as companies hoped for an improvement in economic conditions and reduction in interest rates.
Andrew Harker, Economics Director at S&P Global Market Intelligence, said: “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.”
