Recent data shows that despite a slight fall in new work, UK construction companies report the highest optimism levels in two years.
The S&P Global UK Construction Purchasing Managers’ Index (PMI®) shows that business activity expectations are currently the strongest since January 2022.
Figures show that construction companies do remain cautious about hiring, however, while total employment numbers fell fractionally, sub-contractor usage was unchanged compared to the previous month.
Sub-contractor rates of pay increased at the fastest pace since September 2023.
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Tim Moore, Economics Director at S&P Global Market Intelligence, which compiles the survey, said, “UK construction companies seem increasingly optimistic that the worst could be behind them soon as recession risks fade and interest rate cuts appear close on the horizon.
“The prospect of looser financial conditions and an improving economic backdrop meant that business activity expectations strengthened to the highest for two years in January.
“Moreover, there were again signs that customer demand is close to turning a corner as total new orders fell to the smallest extent for six months.”
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