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U.K. Construction Output Growth Marks Six-Year High

April 8, 2021 by Forex Winner Leave a Comment

U.K. Construction Output Growth Marks Six-Year High

Construction output of the United Kingdom expanded at its sharpest pace in over six years in March, according to data released by IHS Markit.

  • The seasonally adjusted U.K. Construction Total Activity Index rose to 61.7 in March from 53.3 in February. This signalled the strongest rate of construction output growth since September 2014.
  • Among the categories, house building was the best-performing index at 64.0, followed by commercial construction at 62.7, and civil engineering at 58.0.
  • Survey respondents commented on mobilization of delayed projects, especially in projects in hospitality, leisure, and office developments.
  • A boost was reported in major infrastructure projects in March, as well as higher workloads due to greater spending on residential construction work and growing new home sales.
  • Construction firms also signalled a sharp increase in purchasing volumes, with input buying registering its steepest upturn since November 2020.
  • Around 41% of the survey panel reported longer delivery times from suppliers, while only 1% reported an improvement. Supply constraints and logistics issues were reported for imported items.

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