Construction recovery losing momentum

Posted on September 10, 2020

• The IHS Markit/CIPS UK construction total activity index reached a near five-year high of 58.1 in July but slid back to 54.6 in August • Seasonally adjusted Housing Activity Index posted in expansion territory of 60.7, commercial work 52.5 and civil engineering activity 46.6 • Any figure above 50 suggests expansion in activity • Lack of new work to replace completed contracts had acted as a brake on the speed of expansion. • House-building which was the hardest hit in pandemic has registered the strongest rebound since the stoppages of work on site in late-March • Total new business volumes increased for the third month running during August, but the rate of expansion remained only modest and slowed since July • Supply chain disruption persisted across the construction sector, which led to stock shortages and an imbalance of supply and demand for construction inputs contributed to higher purchasing costs.