Construction posts in UK better than expected in June figures
The construction industry in Britain experienced the worst slowdown of the year in June, but great news has arisen and things are now looking up as it is staging a recovery stronger than expected.
Bright rays of sunshine and a large temperature increase helped builders get back to work after a tough start to the year, due to the heavy snow downfall in the early months.
IHS Markit and the Chartered Institute of Procurement and Supply released the latest survey and there was the largest increase in buying construction materials in June for two-and-a-half-years. Not only that, but the gauge of activity on the purchasing managers index rose from 52.5 in May, to 53.1 in June, the highest in seven months.
The bounce-back of the industry could suggest that the weakness earlier in the year was a result of the ‘Beast from the East’ and wasn’t set off by a general malaise for the construction trade.
The raising of the cost of borrowing was delayed by Threadneedle Street due to poor economic data after heavy snowfall in the first few months of 2018, although the bank has facilitated growth for an interest rate hike next month.
The economy grew by 0.2% in the first quarter compared to previous forecasts of 0.1%, according to the ONS.
Large infrastructural projects like the expansion of Heathrow Airport would be vital to certifying the UK leaves its mark as an infrastructural leader on the world stage, especially as we are leaving the European Union.
The uncertainty when it comes to Brexit has forced some businesses to put large construction projects over the past few months, which could lead to making the government spending key for persuading firms to invest in the UK.
As a leading construction supplier, we are delighted to hear the increase of construction figures over the past month, and are excited to see what the rest of summer brings us. Call 0113 2523636 for more information.