The UK construction industry has returned to growth, with the Purchasing Managers' Index (PMI) surging to 55.3 in June, up from 28.9 in May and a record low of 8.2 in April. Any reading above 50 indicates expansion, according to IHS Markit/CIPS.
The data suggests the economy is recovering from the coronavirus lockdown, though the country faces its worst recession in 300 years. Residential building saw the strongest growth, with 46% of survey respondents reporting increased activity. Commercial and civil engineering also returned to growth, albeit at a softer pace.
New business volumes increased marginally for the first time since February, but the rate of growth was slower than the overall improvement in activity. Firms cited client hesitancy and longer lead times for securing contracts. Employment fell amid cautious hiring and redundancies as furlough schemes ended.
Tim Moore, economics director at IHS Markit, said: 'June's survey data revealed a steep rebound in UK construction output as more sites began to reopen and the supply chain kicked into gear.' Duncan Brock of CIPS added: 'There are still some potholes to navigate around as Government support for jobs is stripped away.'
Chancellor Rishi Sunak is expected to announce further job support measures in a mini-Budget on Wednesday, following the easing of lockdown restrictions for shops and hospitality.
