UK’s Construction PMI rises to 66.3 as economy reopens

The IHS Markit/CIPS UK Construction Purchasing Managers Index (PMI) rose to 66.3 in June 2021, signaling the strongest rate of output growth since June 1997 following the reopening of the UK economy.

House building activity increased at the fastest pace since November 2003 and commercial work output rose the most since March 1998.

In addition, civil engineering activity growth remained strong overall. Total new orders increased for a 13th consecutive month, although the latest expansion was slower than May’s survey-record high, while the pace of job creation remained among the fastest seen over the past seven years and suppliers’ delivery times lengthened to the greatest extent since the survey began.

On the price front, purchasing prices rose at record pace on the back of severe shortages of construction products and materials.

Looking ahead, business confidence eased to its lowest since January, in part reflecting concerns about labour availability and the sustainability of the recent surge in demand.

Source: Trading Economics