IHS Markit’s construction Purchasing Managers Index registered 61.6 last month, only fractionally below March’s record reading of 61.7. Any figure above 50.0 indicates an overall expansion of construction output.
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Once again commercial construction work led the way, but the civil engineering sector was the most notable grower, showing its fastest increase in output since 2014.
Construction companies often cited increased levels of work on major infrastructure programmes, including contract awards from HS2 and Highways England.
Housebuilding also continued to rise, but at a slightly slower pace than in March.
However, as many economists had predicted, the sudden burst of demand has led to a rapid jump in prices in some sectors, leading to fears of growing inflation.
Higher prices paid for a wide range of construction items contributed to the fastest overall rate of cost inflation since the survey began in
Steel, timber and transportation were among the most commonly reported items up in price,
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Imbalances in the supply of materials for construction also led to delivery times being extended for firms.
optimism for the next 12 months.
“The overall growth rate of new business strengthened to the fastest since
“With confidence levels on the rise, it’s important that contractors maintain this momentum and use the sustained levels of investment from central government as a catalyst for positive change. Our recent consumer research indicates that the general public wholeheartedly endorse investment in construction projects that create social value.
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“The pandemic has accelerated trends towards more conscientious, community-focused development and contractors who are most aligned to these values – particularly those supporting public sector contracts – will ultimately be best-placed to respond to this call in the months ahead.”
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