UK May construction sector PMI falls to 58.0; input prices at 9-month high
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LONDON (Thomson Financial) - UK construction sector growth slowed in May after hitting its highest level in almost three and a half years in April, but remained strong, supported by ongoing demand for housing, the Chartered Institute of Purchasing and Supply said.
The headline purchasing managers index fell to 58.0 in May from 59.8 in April, CIPS said.
A reading above 50 indicates expansion.
The breakdown of the survey revealed that output and new orders growth dropped slightly, but input price inflation jumped to a nine-month high of 70.2.
"Purchasing managers largely attributed this slower rate of growth to input price inflation climbing to a nine-month high," said Roy Ayliffe, Director of Professional Practice at CIPS.
However, he noted that the overall level of activity remained "considerably strong", as housing demand stayed very buoyant.
"Growing demand for UK housing, coupled with a large number of
successful bids for planning permission, helped push the overall construction
performance. In turn, this has helped boost sector activity expectation levels for the next year," he said.
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