April 2018 UK Markit/CIPS construction PMI 2 May 2018

  • Prior 47.0
  • Construction activity rises at fastest pace for five months
  • Residential work expands at strongest rate since May 2017
  • New orders increase slightly in April

A good bounce back from the weather.

On a more positive note, input cost inflation was unchanged from the 20-month low seen in March. Reports from survey respondents suggested that higher fuel costs and increasedprices for steel-related inputs were key factors pushing up operating expenses in April.

Tim Moore at Markit says;

“A rebound in construction activity was pretty wellinevitable after snowfall resulted in severe disruptions on site during March. House building led the way, with growth in April among the strongest seen over the past two-and-a-half years. However, the picture was less positive in other areas of construction, with commercial building and civil engineering work rising only marginally. While temporary factors make it difficult to gauge underlying momentum, the recovery from March’s low point is somewhat underwhelming and provides an indication that the construction sector has been treading water at the very best in recent months. A consistent theme so far this year has been fragile demand conditions and subdued volumes of incoming new work. Survey respondents noted that heightened economic uncertainty continued to hold back construction growth in April, with risk aversion among clients leading to delays with spending decisions on new projects.”

GBP bid a touch but nothing extreme.

Ryan Littlestone

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