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UK Construction Sector Climbs to Highest Since July 2021

February 4, 2022 by Forex Winner Leave a Comment

UK Construction Sector Climbs to Highest Since July 2021

Source: IHS Markit

Business activity in the UK construction sector expanded at the fastest pace in six months in January, driven mainly by the growth in new orders during the month. IUKP.L fell 0.90%.

  • The IHS Markit/CIPS UK Construction PMI Total Activity Index stood at 56.3 in January, up from 54.3 in December. This is the biggest expansion since July 2021.
  • New order growth climbed to the highest level since August 2021, as firms reported higher confidence among clients, along with strong pipelines.
  • Commercial work posted the best performance with a six-month high growth, as economic conditions improved and boosted demand.
  • Civil engineering rebounded back to positive territory, but this was softer than the growth recorded in the construction sector. House building fell to a four-month low.
  • New project starts and stock building efforts and stock building efforts reflected higher input buying, even as demand for construction products and materials rose.
  • Construction firms remained optimistic, with the majority expecting a boost in output for the year ahead. Optimism climbed to the highest since May 2021.

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