The UK’s construction activity saw growth in June, but at a slower rate than in the prior month, survey results from S&P Global showed Thursday.

The headline S&P Global UK construction purchasing managers’ index registered 52.2 points in June, down from 54.7 points in May. This was below market consensus, with FXStreet pencilling in a fall to just 53.6.

Remaining above the 50.0 no-change mark for the fourth consecutive month, the latest reading signalled a sustained improvement in overall construction activity in the UK, albeit with the pace of growth softening from the previous month.

S&P explained that the main driver in growth continued to come from commercial activity.

The only category to record a drop in activity was housing, where output fell ‘solidly’, S&P added.

‘Continued growth of the UK construction sector in June meant that the sector has recorded sustained expansion throughout the second quarter of the year. While there were signs of a slowdown in the latest survey period, most notably around housing activity, firms indicated that a slowdown in new order growth was in part related to election uncertainty. We may therefore see trends improve once the election period comes to an end,’ said Andrew Harker, economics director at S&P Global.

‘Moreover, confidence in the year ahead outlook remained strong and firms increased employment to the largest extent in ten months.’

The construction PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 150 construction companies in the UK. Responses were collected between June 12 and 27.

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