The construction sector unexpectedly bounced back in September, experiencing growth following months of decline. Construction PMI read 52.3 in September, up from 49.2 in August and the first indication of growth in the sector since June. Property developer Redrow’s chief executive John Tutte says the growth is a “step in the right direction” adding that the positive news is bolstered by the government’s announcement yesterday that it will invest in the building of more houses. “Any government policy that has the potential to continue to accelerate housebuilding is very welcome but, as ever, the devil is in the detail and we are watching closely to see how this unfolds in the run up to the Autumn Statement,” says Tutte. The PMI survey is produced by IHS Markit, which said that activity increased in all areas of construction, but particularly in residential housebuilding.
The IHS Markit purchasing managers' survey showed growth returning to the UK construction sector in September, pushed up primarily by residential housebuilders. Construction PMI beat expectations, coming in at 52.3 compared to 49.2 in August. John Tutte's CEO welcomed the news and added that the government's announcement that it would invest in more house building was positive. However, he cautioned that the firm would watch closely for details to emerge in the run-up to the chancellor's Autumn Statement.