UK housebuilding activity rebounded strongly in May after stuttering to a seven month low in March, the IHS Markit/CIPS UK Construction Purchasing Managers’ Index has revealed.
Construction activity expanded at its fastest rate in 17 months in May with the help of the fastest residential upturn since the end of 2015.
Tim Moore, senior economist at IHS Markit, said: “The UK construction sector has started to recover strongly from its slow start to 2017.
“Housebuilding was the key growth driver, with work on residential projects rising at the fastest pace since December 2015.
“A sustained rebound in residential building provides an encouraging sign that the recent a soft patch for property values has not deterred new housing supply.
“Instead, strong labour market conditions, resilient demand and ultra-low mortgage rates appear to have helped boost work on residential development projects.”