Construction activity has risen at the fastest pace in three months, but housebuilding has contracted at the fastest pace since the first Covid lockdown three years ago.
The latest construction purchasing managers’ index from S&P Global and the Chartered Institute of Procurement & Supply shows total construction activity in Britain had risen to a measure of 51.6 in May, driven by increases in commercial building.
Commercial building was the best-performing category, with a PMI sub-index of 54.2 in May, up from 53.9 in April.
The overall figure has been above the 50 mark for four months in a row.
However, work on residential building projects fell for a sixth month in a row in May.
The reading for activity in the housebuilding industry dropped to 42.7, the lowest figure for more than 14 years, outside of the pandemic. Anything below 50 represents a contraction.
John Glen, chief economist at the institute, said the drop-off in residential development “will send a chill down the spine of the UK economy”.
