New figures have revealed how construction activity in the UK has risen at its fastest rate for five months.

The latest IHS Markit/CIPS UK Construction Purchasing Managers' Index (PMI) posted 52.5 in April, up from the 20-month low of March at 47.0 and signalling the highest reading since November last year.

April's data revealed a moderate recovery in output following weather-related disruption caused by the 'Beast from the East' in March. Despite housebuilding being the main driver of activity for the sector, there were signs that underlying demand across the construction sector remained subdued, with total new work rising only marginally during the period.

Weather-related improvements were also seen for commercial building and civil engineering activity, with both areas recording a modest return to growth after marked declines in the previous month.

Meanwhile, supply chain pressures remained marked in April, with low stocks and shortages of transport capacity contributing to another sharp lengthening of delivery times for construction materials. However, input cost inflation was unchanged from the 20-month low seen in March. Reports from survey respondents suggested that higher fuel costs and increased prices for steel-related inputs were key factors pushing up operating expenses in April.


With the increase in new business being the first recorded by the IHS Markit/CIPS UK Construction PMI survey this year, this trend was mirrored by a renewed rise in new order volumes across the sector. However, the rate of new business expansion was only marginal, with anecdotal evidence citing heightened economic uncertainty and subdued confidence among clients.

In some cases, construction firms noted that a knock-on impact from unusually bad weather conditions had contributed to delays with sales completions during the latest survey period. Yet, despite relatively weak new business growth, employment numbers increased for the 21st consecutive month in April. Respondents noted that new project starts and an expected increase in workloads had underpinned job creation at their business units.

Firms are also relatively upbeat about the 12-month business outlook, with the degree of confidence the strongest recorded since May 2017.

Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, said: "April's data provides some relief after last month's weather disruption, especially for the housing sector after a lacklustre few months. However, economic uncertainty and Brexit-related indecision continue to lurk beneath the surface as obstacles to the construction sector's stability. New orders remain too few and far between, with just a small improvement in the level of extra work reported this month.

"The effects of the previous month's bad weather were echoed in April as supply chains stayed under the cosh again. Besieged by raw material stock shortages and capacity difficulties, suppliers tried to catch up on their delivery commitments with limited success. Transportation times were still lengthy for construction materials for projects already in the pipeline.

"There were some positives reported by construction firms in April as optimism rose to its highest level since May 2017 and an increase in workforces was reported in anticipation of a better second quarter of the year. What the sector needs now is more widespread client confidence and big ticket projects to follow suit. House building at least seems to be moving in the right direction, and by achieving its fastest rate of growth since May 2017 it has gone from a laggard to a construction leader again."

(LM)