A strong housebuilding sector generated marginal growth in the construction sector in April, according to the latest figures from a survey of buyers.
The IHS Markit/CIPS UK Construction Total Activity Index reported a score of 50.5 in April, where anything above 50.0 represents growth.
It is the first time the index has posted above the 50.0 mark since January.
Housebuilding was “by far” the strongest area, with solid expansion in residential work, reaching its highest point since December 2018, according to the survey. Respondents commented on resilient demand and a strong flow of new buyers.
This is not a paywall. Registration allows us to enhance your experience across Construction Management and ensure we deliver you quality editorial content.
Registering also means you can manage your own CPDs, comments, newsletter sign-ups and privacy settings.
By contrast, commercial work was the weakest area, which continues the trend seen so far in 2019. A number of firms linked lower commercial construction to Brexit-related uncertainty and delays with client spending decisions.
Civil engineering also reported a decline in April, although the rate of contraction was only marginal.
Meanwhile, firms indicated a modest decline in new orders during the month, with anecdotal evidence suggesting political uncertainty, softer UK economic growth projections and subdued demand for new commercial projects all contributed to fewer tender opportunities.
Tim Moore, associate director at IHS Markit, said: “A return to growth would normally be considered a positive month for the UK construction sector, but the weakness outside of house building gives more than a little pause for thought. Commercial activity and civil engineering both remained on a downward path in April as political uncertainty led to delays with spending decisions.
“Residential work retained its position as the sole driver of growth across the three main segments of construction activity. Survey respondents once again noted that residential projects were buoyed by strong demand for new homes, low mortgages rates and first-time buyer incentives.
“On the supply side, sub-contractor availability worsened and construction firms continued to report low stocks among suppliers in April. Latest data revealed the greatest lengthening of lead times for construction inputs since February 2015, reflecting ongoing capacity pressures across the supply chain.”
