UK PMI construction rose sharply to 55.3 in June, up from May’s 28.9, well above expectation of 47.0. While new orders stabilized, employment fell again. Also, lack of materials availability pushed up input costs.
Tim Moore, Economics Director at IHS Markit: “As the first major part of the UK economy to begin a phased return to work, the strong rebound in construction activity provides hope to other sectors that have suffered through the lockdown period. While it has taken time for the construction supply chain to adapt and rebuild capacity after widespread business closures, there is now clear evidence that a return to growth has been achieved…
“…Looking ahead, construction firms are more confident than at any time since the start of the COVID-19 pandemic. However, the ongoing reductions in staffing numbers seen in June provide a stark reminder that underlying conditions across the sector are a long way off returning to those seen before the public health emergency.”
