The UK construction sector marked a substantial growth milestone this September, achieving its highest performance since April 2022.
Driven by a series of positive developments, this growth highlights the sector’s resilience and adaptability amid changing economic conditions.
The construction sector’s expansion is underscored by data from the S&P Global Market Intelligence PMI, which climbed to 57.2 in September, a notable rise from August’s 53.6. A PMI above 50 signifies growth, showcasing seven consecutive months of increased activity in the sector. Tim Moore, S&P Global’s Economics Director, reported a decisive upturn in output growth momentum.
Additionally, survey data reflect growth across all construction sub-sectors, with civil engineering leading at a score of 59.0. The demand for renewable energy infrastructure and major project development has been instrumental to this progress.
Jordan Smith of Thomas & Adamson recognises the broadening recovery, citing the surge in civil engineering and renewable infrastructure as evidence of tangible outcomes from governmental investments.
However, the sector faces ongoing challenges from inflation, with input costs surging to new highs since last May.
Despite these challenges, the sector’s strong performance is a testament to its resilience and the effective mitigation strategies employed by industry players.
The sector is poised for further expansion, provided that macroeconomic conditions remain stable.
The UK construction sector’s impressive performance in September provides a positive indicator of its future prospects. With strong government backing and strategic industry efforts, the sector is well-positioned to navigate forthcoming challenges.
The construction sector’s remarkable growth underscores its critical role within the UK economy. By capitalising on government initiatives and adapting to market demands, the sector is likely to continue its upward trajectory.
Ongoing investments in infrastructure and renewable energy projects are expected to sustain this positive momentum, affirming the sector’s resilience and adaptability.
