The Construction PMI has
jumped to 57.2 in September, marking the fastest upturn in construction output
since June 2021, following seven consecutive months of growth in the sector.
The index, based on a survey of 170 construction companies, is a key
economic indicator, reflecting improving conditions in the industry.
Atul Kariya, Head of Construction & Real Estate at MHA has commented on today’s PMI:
This jump in the Construction PMI to 57.2 is positive news, suggesting that the construction industry is steadily moving to firmer ground. With the election behind us and more economic stability there is hope that investment will begin to flood into the sector. The rebound signals a recovery in demand, with output growth up across all three of the major construction categories, with civil engineering seeing the biggest uptick at 59.0, followed by commercial building at 55.2 and residential house building at 54.3. Order books remain strong, which has been the case for the last few months and there is hope that the delays that there have been in getting building started will now be subsiding.”
However, there are several headwinds facing the sector. While the announcement of Labour’s housing plan has been welcomed, our clients are telling us that the uncertainty as to further announcements in this month’s Budget is causing concern. They are hoping that it will bring more clarity, which will provide more confidence to investors, developers and contractors. It is also essential that the Building Act Safety Gateways do not unduly delay the start of projects."
As Construction PMI is a leading economic indicator, it could mean that we are starting to get an indication that there may be brighter times ahead.”
MHA’s Economic Advisor, Professor Joe Nellis adds:
This rise in the construction PMI for September was unexpected and signifies that the economy may have turned a corner."
All eyes will be on the Budget at the end of the month. We wait to see if the Chancellor can conjure up a fiscal stance that will add more fuel to recovery across the economy”
The construction and real estate sectors are vital to the UK’s prosperity, driving economic growth, employment, and investment, while shaping the country’s social infrastructure. Together, these sectors contribute approximately 19-21% of the UK’s GDP, with construction accounting for 6-7% and real estate adding 13-14%. They also provide employment for around 8-9% of the UK workforce, underpinning nearly every other sector of the economy."
Real Estate & Construction is also a core sector of both MHA in the UK and globally for Baker Tilly International, where our specialists invest considerable time and resources to ensure our expertise and services are unparalleled."
The construction and real estate sectors are vital to the UK’s prosperity, driving economic growth, employment, and investment, while shaping the country’s social infrastructure. Together, these sectors contribute approximately 19-21% of the UK’s GDP, with construction accounting for 6-7% and real estate adding 13-14%. They also provide employment for around 8-9% of the UK workforce, underpinning nearly every other sector of the economy.
Real Estate & Construction is also a core sector of both MHA in the UK and globally for Baker Tilly International, where our specialists invest considerable time and resources to ensure our expertise and services are unparalleled.
