In welcomed news for residential property investors, the tides have finally turned for Britain’s construction industry. After a challenging six months of contraction, the construction industry returned to growth in March according to The S&P Global/CIPS construction purchasing managers’ index.
For the first time since August 2023, the index rose to 50.2, above the 50-point threshold required for growth. With the services PMI rising to 53.1 and manufacturing reaching a 20-month high, it means that every big sector of the economy is now expanding for the first time since June 2022, signalling that Britain is no longer in recession.
Activity in construction was driven by an increase in civil engineering and importantly residential housebuilding, which increased at its fastest rate since November 2022 after suffering one of its worst declines since the 2008 financial crisis.
Commenting, Tim Morgan, CEO and Co-founder at E.R.E Property, said: “Britain’s construction sector has suffered over the last six months, so it’s welcomed news that the sector has now returned to growth. Interest rates are predicted to fall later this year as CPI inflation returns to target. This, coupled with the recovery in the wider economy, is expected to result in continued growth in construction activity, leading to new investment opportunities reaching the market.”
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