Advertisement
Britain's construction industry showed signs of recovery in June, with its PMI reaching a six-month high of 48.8 from 47.9 in May. This improvement was led by housing activity expanding for the first time since September. However, the commercial building sector contracted, its fastest rate since mid-2020, due to economic concerns and weak client confidence, causing a decrease in new orders. This presents a mixed picture for the UK construction market, balancing residential growth with commercial decline.
Britain's construction industry has recently shown signs of recovery in its overall activity. Data for June was released, indicating an uptick in homebuilding across the United Kingdom, as measured by a key industry index. Advertisement
The S&P Global UK Construction Purchasing Managers' Index (PMI) rose to 48.8 in June, up from 47.9 in May. This marked a six-month high for the index, though it remained below the 50-point threshold that signifies growth in the sector. The improvement in the overall index was primarily driven by housing activity. This segment expanded for the first time since September. However, the commercial building sector experienced a contraction, which was its fastest rate since mid-2020.
This decline in commercial work is linked to mounting concerns about the economy and fragile client confidence. It led to a decrease in total new orders, with many construction companies reporting reduced overall workloads. Business activity expectations also fell to their lowest level since December 2022. The market shows a split picture: residential growth stands in contrast to the commercial sector's downturn. The Construction PMI is an economic indicator, reflecting the health of the construction sector.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
