UK Construction Rises Despite Supply Constraints

city living modern newly built apartment blocks finished and under construction

UK construction growth remained largely softer in October than the 24-year high recorded in June as businesses post widespread supply challenges and rising purchase prices.

Source: IHS Markit.

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The adjusted IHS Markit/CIPS UK Construction PMI Total Activity Index increased to 54.6 in October from 52.6 in September, to indicate a robust and surge in output volumes.

The housebuilding index at 55.4 surpassed commercial at 55.2 as the best-performing component of construction work in October.

Commercial construction also grew at a quicker rate than in September, with respondents citing sustained support from looser pandemic restrictions.

New order growth remained fairly the same from September’s 8-month low and was weaker than the average recorded during the summer.

Construction firms mostly recognized strong customer demand, but some cited supply constraints and rising costs had slowed down contract negotiations.

The near-term forecast for construction growth remained positive in October. The level of optimism improved slightly in September.


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