Markit/CIPS construction PMI which measures building activity in the UK decreased to 60 in May from a previous 60.8. This decrease reflects the slowing growth in commercial spaces such as shops, offices and warehouses, but the house building market remains in a period of boom.
The Markit/CIPS construction PMI is still well above 50 which separates expansion from contraction of the industry, although total construction output still remains around 10% below its pre-crisis peak.
Rob Wood, chief UK economist at Berenberg, said: “Construction is still booming despite the PMI slipping back a little in May. Construction had a bad recession as the government slashed investment projects and the housing market crashed. But the economic recovery is driving a sharp upturn. Low interest rates, rising confidence and surging house prices are combining in a sweet spot for the sector.”