UK PMI Construction rose to 66.3 in June, up from 64.2, above expectation of 63.5. That’s also the highest level in exactly 24 years. Markit said the recovery was led by house building and commercial work. Supplier delivery times lengthened to the greatest extent on record. Input price inflation also reached the highest since survey began in April 1997.
Tim Moore, Economics Director at IHS Markit: “June data signalled another rapid increase in UK construction output as housing, commercial and civil engineering activity all expanded at a brisk pace…. Supply chains once again struggled to keep up with demand for construction products and materials… Purchasing prices and sub-contractor charges both increased at a survey-record pace in June, fuelled by supply shortages across the construction sector. Escalating cost pressures and concerns about labour availability appear to have constrained business optimism at some building firms. The degree of positive sentiment towards the year ahead growth outlook remained high, but eased to its lowest since the start of 2021.”
