LONDON, June 6 Reuters Weak growth across Britain39;s construction sector picked up modestly in May, despite an increasingly severe downturn in housebuilding activity prompted by rising interest rates, a survey showed on Tuesday.
The SP GlobalCIPS UK Construction Purchasing Managers39; Index PMI rose to 51.6 from 51.1 in April. A Reuters poll of economists had pointed to no change in May.
The civil engineering and commercial sectors drove the increase, with the survey39;s gauge of new orders reaching its highest level since April 2022.
Overall, construction added to recent signs of resilience in the economy, even if many forecasters expect Britain to suffer higher inflation and weaker growth for longer than its peers.
Rising demand among corporate clients and contract awards on infrastructure projects … underpinned the fastest rise in new orders since April 2022, said Tim Moore, economics director at survey company SP Global.
It was a different story for housing activity, which contracted at the fastest rate since the onset of the COVID19 pandemic three years ago. Excluding the pandemic, only the 2009 recession saw worse downturns in housebuilding.
Overall, construction added to recent signs of resilience in the economy, even if many forecasters expect Britain to suffer higher inflation and weaker growth for longer than its peers.
Rising demand among corporate clients and contract awards on infrastructure projects … underpinned the fastest rise in new orders…