The UK construction sector grew the most since June 1997, underpinned by another sharp rise in new orders, survey data published by IHS Markit showed on Tuesday.
The Chartered Institute of Procurement & Supply construction Purchasing Managers’ Index rose to 66.3 in June from 64.2 in May. A score above 50 indicates expansion.
Sharp increases in business activity were seen across all three main areas of the construction sector monitored by the survey.
Construction work in the house building sub-category grew at the fastest pace since November 2003. The second-best performing area was commercial work, with output rising at the strongest rate since March 1998.
Meanwhile, civil engineering activity rose sharply in June, but the speed of growth eased to a three-month low.
There was a rapid turnaround in demand for new construction work related to the opening of the UK economy. Construction companies indicated another month of sharply rising employment numbers, reflecting efforts to boost capacity and meet incoming new orders.
On the price front, the survey showed that input prices grew the most since the survey began in April 1997.
Companies remained optimistic about growth prospects for the next 12 months. That said, the degree of confidence eased to its lowest since January.