UK Construction Sector Sees Growth Driven by Commercial Projects

UK: The UK’s construction sector experienced an acceleration in growth in November 2024, driven by an increase in demand for office buildings and infrastructure projects. The S&P Global construction purchasing managers' index (PMI) rose to 55.2 from 54.3 in October, signalling ongoing expansion in the industry. This growth was largely attributed to commercial construction, which saw its fastest rise in two-and-a-half years. In contrast, housebuilding continued to face challenges, with a decline in residential construction activity, marking its steepest drop since June. 

Despite stronger demand in commercial and civil engineering projects, the sector faced pressures from higher borrowing costs, weak consumer confidence, and political uncertainty following the autumn Budget. These factors contributed to a slowdown in new work and a decrease in job creation, alongside a fall in business optimism across the sector. 

Source: Guernsey Press