Bellwether index stays in positive territory for eighth successive month
Construction output growth slowed in October amid caution ahead of last month鈥檚 budget.
The S&P Global UK Construction Purchasing Managers鈥� Index (PMI) showed a score of 54.3 in October down from a 29-month high of 57.2 in September.
Despite the lower growth, the index was above the 50% no change mark for the eighth successive month while the score of 54.3 was above the average score in the first half of the year.
Civil engineering with a score of 56.2 was the fasting growing category of construction output in October, with survey respondents noting rising demand across a range of energy infrastructure projects, especially renewables.
Commercial work expanded by 52.8 but the number for housebuilding was 49.4, signifying a drop in output and the first in the sector since June.
鈥淪ome construction companies noted that elevated borrowing costs and uncertainty ahead of the Autumn Budget had constrained demand,鈥� S&P Global said.
Similarly, S&P said total new work increased in October but at a lower rate than September while construction job creation increased to a three-month high.
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Tim Moore, economics director at S&P Global Market Intelligence, said: 鈥淭he construction sector signalled another month of solid output growth in October, despite being unable to match the highs seen in September.鈥�
Aecom head of cost management Brian Smith added: 鈥淲ith demand set to strengthen as 2025 approaches, the outlook is certainly brighter and a much-needed period of economic stability will stimulate a recovery in private sector investment.鈥�
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