Latest data released by Markit/CIPS - 4 December 2020
- Prior 53.1
UK construction activity surprised to the upside last month, as new order growth sees its fastest rise since October 2014. Home-building remains the best performing sub-sector while civil engineering work also returned to growth in November.
The rebound after the drop in October is at least a minor positive signal for the UK economy. Markit notes that:
"UK construction output stayed on a recovery path in November and there were signs that the main growth driver has transitioned from catch-up work to new projects. The latest increase in new orders was the strongest since late-2014, with construction firms reporting a boost from rising client confidence and the release of budgets that had been held back earlier in the pandemic.
"House building was once again the stand out performer, while a return to growth for civil engineering contributed to the rise in the headline PMI during November. Commercial construction lagged behind the recovery seen elsewhere in the sector amid subdued demand for office space, retail developments and other corporate projects hit by the pandemic.
"Supply chain challenges remain on the horizon, as signalled by another sharp lengthening of lead times for construction products and materials. Transport delays and low stocks among suppliers were reported by construction firms in November, which led to the fastest increase in purchasing costs for over one-and-a-half years."
