UK construction sector records fastest growth in 2 years amid recovery

Posted on October 4, 2024   |  

The UK construction sector saw its strongest growth in over two years in September, fueled by more large projects and increased housebuilding.

The sector's score rose to 57.2 in September, up from 53.6 in August, indicating growth since a score above 50 means expansion.

This performance exceeded analyst predictions of 53.1 and is the best since early 2022.

Key factors for this growth include lower interest rates, stable economic conditions, and a strong pipeline of infrastructure projects.

Construction companies reported higher client spending due to lower borrowing costs and greater political stability after the general election.

However, the rise in activity has led to higher input costs because of increased demand for raw materials and supplier wages, reaching their highest since mid-2023.

New projects have also resulted in moderate job growth and quicker purchasing activity in the construction sector.