The UK construction industry has seen a faster growth than expected in November with the highest level of orders since 2014, according to a survey by the IHS/CIPS Construction Purchasing Managers’ Index (PMI). According to the data, the index rose from 53.1 in October to 54.7 in November.
Data showed that the UK’s monthly construction output was almost halved during the first lockdown in April and in September was still 10% below its level a year earlier. However, since the first lockdown ended in June, house prices have risen alongside lenders approving the most mortgages since 2007. This means that there has been a higher demand for house builders to commit to more construction with November seeing the first growth in civil engineering activity since July. Businesses also reported the biggest increase in purchases of raw materials since 2014.
IHS Markit’s economics director, Tim Moore, said: “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."
According to Reuters, businesses in the construction sector such as Persimmon and Taylor Wimpey are both forecasting a positive outlook for 2021 earlier this month.
Find out more industry data from IHS Markit here.