UK construction growth remains subdued
The UK's construction activity remained somewhat subdued in May, staying at 52.5, according to the closely-watched purchasing managers' index (PMI) from IHS Markit.
The IHS Markit figures indicated a moderate increase in total activity, but the country's construction industry remains subdued in the context of historical data.
Read more: Manufacturing growth streak continues in spite of investment clouds
Residential work remained the strongest of the three monitored sub-sectors for the third month running, the group said, however, the pace of expansion eased from Aprils 11-month high due to a house building rebound after heavy snow in March.
Both the commercial and civil engineering sectors also continued to grow, with commercial construction being the only category to record a faster rate of expansion than in April.
Sam Teague, economist at IHS Markit, said: “The May PMI data signalled an unchanged pace of activity growth across the UKs construction sector since Aprils somewhat underwhelming rebound, yet nevertheless indicating a recovery in the second quarter after the contraction seen at the start of the year.
“However, activity in May was once again buoyed by some firms still catching up from disruptions caused by the unusually poor weather conditions in March, and a renewed drop in new work hinted that the recovery could prove short-lived."
Read more: UK construction output falls to lowest levels since 2012: ONS
The data comes after Aprils IHS/Markit survey showed that UK construction sector recovered to to a five-month high, also led by a strong performance in house building.
Aprils figures showed that residential work was by far the best performing category, with the rate of growth reaching its strongest since May 201 after the March snow slump.
David Cheetham, chief market analyst at XTB said: "The latest construction figures support the recovery seen in other data points in recent weeks after both retail sales and manufacturing came in better than expected.
"While the reading was above forecast it was still only inline with last months at 52.5 and another drop in the new order book – taking the tally to 4 declines in the last 5 – is a worrying sign.
"However, the overall reading is mildly positive and a beat in tomorrows services PMI would raise the mood further and support the notion that the slowdown seen in quarter one was in fact transitory."
Meanwhile, Fridays manufacturing figures showed that activity in Britain picked up somewhat in May to 54.4, after a 17-month low was recorded the previous month.
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