UK Construction Activity Jumps in July

Thursday’s survey data showed that the British construction industry grew at the fastest rate in almost five years in July as business rebounded after the Covid 19 lockdown, reflecting a rebound in manufacturing and parts of the services sector.

However, the services sector still has a long way to go before returning to pre-pandemic levels, and construction companies are still shedding jobs at the fastest rate since the global crisis.

The IHS Markit / CIPS construction Purchasing Managers’ Index rose to 58.1 in July from 55.3 in June – slightly above economists’ forecasts in a Reuters poll and a sharp rebound from April’s record low of 8.2.

“Survey respondents noted a boost to sales from easing lockdown measures across the UK economy and reduced anxiety about starting new projects. However, new work was still relatively thin on the ground, ”IHS Markit’s economics director, Tim Moore, said.