Construction in the UK at highest level since March

UK construction has seen the sharpest rise in activity for five months. In August the industry put in its best performance since March, according to the latest report for the UK Purchasing Manager’s Index.

Both private and public sector projects fuelled the healthy figures. However, there was marked drop in housing activity.

The Purchasing Manager’s Index, which measures the construction economy, climbed from 53.2 in July to 54.3 last month.

Commercial activity had a particularly strong month, reaching an 11-month high. Civil engineering also did well, hitting its strongest growth since February 2004.

The Housing Activity Index, however, was down to 45.4, its third decline in the past four months.

Roy Ayliffe, director of professional practice at the CIPS, added that the increased activity was leading to more purchasing activity as the industry rushed to buy materials before price hikes kicked in. The knock on effect, he said was “a significant lengthening in lead times”.