UK Construction PMI shows strong level of confidence returning to the sector - Thomas & Adamson comments on UK construction output

UK Construction PMI shows strong level of confidence returning to the sector – Thomas & Adamson comments on UK construction output

Jordan Smith, technical director at Thomas & Adamson, said: “It’s encouraging to see a significant increase to construction output in the latest UK Construction PMI data, indicating a strong level of confidence returning to the sector. The large rise in civil engineering and interest in renewable infrastructure, in particular – along with the boost to housebuilding – suggest the recovery is broadening out, and that the government’s commitments to investment are translating into real projects. It’s critical that this commitment is maintained, however, to meet the needs of the industry and avoid projects being paused or stuck in their infancy. Respondents to the survey noting greater political stability, while interest rates beginning on a downward trajectory should hopefully create a more predictable funding environment, enabling more projects to get off the ground. A potential issue to be closely monitored is cost inflation rearing its head once again, which developers will need to consider carefully in their project plans.”