UK automakers have signaled a “welcome combination” of increased business activity and mitigation of supply chain disruptions and pricing pressures.
The IHS Markit / Cips UK Construction Purchasing Managers Index hit a four-month high of 55.5 in November, from 54.6 in October, signaling a robust and accelerating expansion in the activity.
Commercial construction was behind the increase, with this sub-index rising to 56.5, reflecting stronger economic conditions and incoming projects.
In contrast, growth in housing construction slowed to 54.7 from 55.4 in the previous month. A reading above 50 indicates that a majority of companies are reporting expansion from the previous month.
The figures highlight “a welcome combination of faster output growth and lower price inflation in the UK construction industry,” said Tim Moore, director of IHS Markit, who compiles the survey.
He added that input price inflation remains extremely high, but has started to decline after reaching decades-long highs this summer.
The latest increase in purchasing costs was the slowest since April, helped by a recovery in supply chain disruption and a slowdown in input purchases.
The proportion of survey respondents citing longer delivery times fell to 47 percent in November, from a high of 77 percent in June.
The industry has rebounded “with the fastest level of production growth in four months,” said Duncan Brock, group director at the Chartered Institute of Procurement & Supply, “as supply chain officials increased their purchasing activity to meet a strong pipeline of new construction projects.