Housebuilding returned to growth in May for the first time since Liz Truss’s mini-budget, helping to lift activity across the construction industry at the fastest pace in two years, according to a closely watched survey.
The S&P Global purchasing managers’ index climbed sharply to a reading of 54.7 in May, from 53 in the previous month. That exceeded City analysts’ expectations and was the third successive month that the PMI has breached the 50-point threshold that separates growth from contraction.
The housebuilding reading rose for the first time since October 2022, jumping to 50.4 in May from 47.6.
Andrew Harker, economics director at S&P Global Market Intelligence, said the construction industry was “building good momentum” and noted that commercial property and civil engineering activity also