UK Construction Grows at Fastest Pace in 2.5 Years

UK Construction Grows at Fastest Pace in 2.5 Years

The UK construction sector experienced its fastest growth in two and a half years in September, according to the latest S&P UK Construction PMI report.

The seasonally adjusted construction activity index rose to 57.2, up from 53.6 in August, marking the strongest increase in 29 months and staying above the neutral 50.0 mark for the seventh consecutive month.

Growth was driven by a surge in new work, spurred by higher client confidence and a supportive economic environment.

Civil engineering led the way with an index of 59.0, followed by commercial building at 55.2. Residential construction, while growing, lagged behind with an index of 54.3, its fastest growth since March 2022.

Lower borrowing costs and political stability were highlighted by survey respondents as key factors boosting client spending.

Developers are also looking ahead to the government’s upcoming Autumn Budget, with expectations around proposed “brownfield passports” and planning reforms.

These measures are seen as positive steps toward long-term growth in the construction sector.

With the sector experiencing sustained momentum, experts are optimistic that continued policy support and market confidence will further drive the industry, particularly in areas like civil engineering and commercial development, setting a robust foundation for future expansion.

Don't miss a single thing...

Sign up to the Mortgage Brain news alerts and never miss a news story.  We will keep you updated every time we post a new article.

What our customers have to say...

Find a first time buyer mortgage deal

Get the right advice with one of our expert advisers...

Connect with one of our expert advisers.  Click below to book a 30 minute, no obligation, appointment.

Book appointment