London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Britain IS building! Construction booms at fastest rate in seven years

Britain IS building! Construction booms at fastest rate in seven years

The closely watched construction purchasing managers' index showed output growth in May hit the highest level since September 2014, at a reading of 64.2. This was up from 61.6 in April.

Britain's construction sector is growing at its fastest rate in almost seven years amid a surge in residential work and commercial building.

The closely watched construction purchasing managers' index (PMI) showed output growth in May hit the highest level since September 2014, at a reading of 64.2.

This was up from 61.6 in April, and the fourth consecutive month of construction growth – any reading above 50 indicates expansion.

The data is the latest sign of bounce- back Britain's rapid recovery from the pandemic, following thumping PMI readings in the services and manufacturing sectors earlier this week.

The figures paint a healthy picture of an economy roaring back into life.

Douglas McWilliams, deputy chairman of economic consultancy, the Centre for Economics and Business Research, said: 'I predicted at the start of the year that this would happen, and now others are starting to come round.

'The economy is bouncing back very strongly and it's outperformed most expectations. Not only has the consumer started spending but business-to-business activity has been good too, which was the bit people hadn't predicted.'

May's manufacturing PMI, released earlier this week, showed conditions in the sector improving at an unprecedented rate with a reading of 65.6.

Backlogs of work rose to their highest level since the survey began in 1994, and there was a record increase in staffing levels as factories began to hire again following the Covid lockdowns.

And in the services PMI, which includes industries from banking to retail and hospitality, a reading of 62.9 pointed to the fastest rate of output in 24 years, as the country began to be released from its lockdown shackles.

In another sign that life was getting back to normal, new car sales surged by 674.1 per cent year-on-year in May, according to industry body the SMMT, with 156,737 new vehicles hitting the road – well up from last year when car showrooms were closed.

And a report on jobs, from accounts KPMG and the Recruitment & Employment Confederation, showed demand for workers in May across the whole of the UK ballooned at its quickest rate for more than 23 years.

Job vacancies were at their highest rate since January 1998 – but the pandemic meant there were far fewer people available to snap up these roles.

Overall availability slumped at the quickest rate since May 2017.

Many younger people who lost their jobs at the start of the pandemic have moved back in with their parents, often relocating out of cities, while thousands of overseas workers have gone back home.

This has led to worrying shortages of staff for firms who rely on these workers, especially hospitality companies such as pubs and restaurants.

KPMG's Claire Warnes said: 'We need businesses and recruiters working alongside government to urgently address the skills gap, by supporting candidates and employees to upskill and reskill to move into new roles.

'This will be crucial to our recovery from the pandemic.'

But the hopes for bounce-back Britain were tempered by rising worries about inflation, or increases in the cost of living.

Increased demand has caused supply chains to become 'stretched' and the costs of raw materials to shoot up.

The construction PMI indicated that firms' costs were rising at the fastest rate since records began 24 years ago.

Max Jones, a director in Lloyds Bank's infrastructure and construction team, said: 'A recovery fuelled by pent-up demand isn't without risks.

'What's been impossible to ignore over the past month is the strain placed on the supply of key materials, and the price rises this has brought about.

'Many merchants are now placing limits on the amount that contractors can buy, stifling long-term planning.'

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×