Recent industry data has revealed the construction sector output growth has experienced a strong rebound in June.

The latest Markit/CIPS UK Construction PMI index jumped from 55.9 in May to 58.1 in June.

Research proposes this is due to a sharp upturn in both commercial and civil engineering growth over the month, with job creation at its fastest so far recorded in 2015.

Reports from survey respondents suggested that improving client demand and strong order books continued to support output growth in June.

Anecdotal evidence also linked greater new business volumes to rising client confidence and improving business conditions across the UK economy as a whole.

Just under two-thirds of the survey panel (62%) forecast a rise in output over the next 12 months, while only 4% expect a decline.


The latest PMI index jumped from 55.9 in May to 58.1 in June.

Tim Moore, Senior Economist at Markit, said: "UK construction companies experienced a growth rebound and surge in business confidence at the end of the second quarter. Survey respondents cited robust inflows of new work in June, adding to already strong order books across the sector.

"Extra workloads and positivity regarding the year- ahead outlook meant that job creation accelerated to its strongest so far in 2015.

"The extent of the recent rise in construction optimism is partly down to relief that pre-election uncertainty has now passed, but it also suggests that firms are infused with confidence that underlying demand will continue to recover.

"Scorching hot demand for some construction products placed additional pressure on supply chains in June, with delivery times lengthening again for a wide range of materials.

"Meanwhile, another substantial rise in sub-contractor charges highlighted that persistent skill shortages in the construction sector are contributing to sharp rises in labour costs in some areas."

Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, David Noble, said: "Construction was on a real high this month with the sharpest rise in overall activity since February as the sector made up for lost ground since the General Election.

"Client expectations and strong order books were the recipe for success along with support from a resilient economic environment encouraging positive sentiment in the sector and resulting in accelerated and hastened purchasing activity."

(LM)