The UK construction sector remained on a strong recovery path, with output growth reaching its strongest since September 2014. New order volumes also increased at the fastest pace since records began 24 years ago. 

The latest Construction PMI data input shows that cost inflation was also at a survey-record high during May, reflecting a surge in demand for construction materials and severe supply shortages. 

Commenting on the data, Federation of Master Builders CEO Brian Berry said: “Rising material prices are continuing to limit the ability of local builders to build back better from the pandemic.

“It’s incredibly worrying to hear that the overall rate of input price inflation was the highest on record. This is consistent with FMB data that shows 93 per cent of builders reported material price increases in the first quarter.

“Against the backdrop of high levels of inquiries for building work, it’s imperative that smaller businesses have the same access to materials as the larger firms during these difficult times.” 

At 64.2 in May, up from 61.6 in April, the seasonally adjusted IHS Markit/CIPS UK Construction PMI Total Activity Index registered above the 50 no-change value for the fourth consecutive month and signalled the strongest rate of output growth for just under seven years.

Housebuilding (66.3)  was  the  best-performing  category of construction  activity in May, followed by  commercial work (64.4).  

Construction companies attributed the surge in order books to strong demand for residential building work and high levels of confidence about the near-term economic outlook.

They remain upbeat  about their prospects for the next 12 months, with 61 per cent predicting a rise in business activity.

4 June 2021