Belfast Telegraph

UK construction steady as firms play catch-up

By Helen Cahill

Output in the UK construction industry held steady in May, as firms continued to play catch-up from a period of severe weather in the first quarter.

The Markit/CIPS UK Construction purchasing managers' index (PMI) remained at 52.5 last month, beating estimates which predicted a reading of 52.

A reading above 50 indicates growth. Following the announcement, sterling nudged up 0.12% against the US dollar at 1.336.

Commercial activity improved, but there was slower growth in both residential and civil engineering projects.

Housebuilding remained the strongest sub-sector in the industry, with a PMI of 55.7, as compared to 52.2 and 50.6 for the commercial and civil engineering sectors respectively.

Samuel Tombs, chief economist at Pantheon Macroeconomics, said: "The long investment time horizons for both commercial and civil engineering projects mean that both sectors likely will remain depressed until some clarity emerges over the UK's long-term relationship with the EU."

Some companies said the unusually good weather helped them to rebound from the Beast from the East.

Belfast Telegraph

Weekly Business Digest Newsletter

This week's business news headlines, directly to your inbox every Tuesday.

Popular