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UK construction sector soars as latest PMI data shows

07 July 2021

Kate Kirby, partner in the Construction & Infrastructure team at DWF, comments on the IHS Markit / CIPS UK Construction PMI for June 2021.

"Output growth in the construction sector has soared to a 24-year high with a rise in new orders helping the UK building sector to get back on track and kick start commercial projects that were previously on ice. The house building industry remains the jewel in the construction sector's crown, with growth spurred on by the stamp duty exemption that has seen intense demand from home buyers this year. 

"The buoyancy across the whole sector seems to be contagious and with pandemic measures now relaxing and the economy reopening, it's pleasing to see the UK construction industry bouncing back so strongly. 

"However, we need to keep a close watch on the factors that could destabilise this optimism. There has been increasing concern from those operating in the industry that materials shortages and rising costs could progressively impact the future success of the sector. The data today shows delivery times and prices are at all-time highs. But this doesn’t seem to be impacting on progress just yet."

Related people: Kate KirbyDavid McNeice and Jonathan Gaskell

 

Read the latest data here

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