Britain’s construction sector grew at the fastest rate for two years in May, with orders and workloads rising across the board, said building firms.
S&P Global construction purchasing managers’ index (PMI) scored 54.7 in May, jumping from 53 in April, ahead of predictions beforehand for a 52.5 read.
Economists said the number was significantly stronger than expected with a number above 50 showing a sector is expanding.
Andrew Harker, economics director at S&P Global Market Intelligence, said: “The UK construction sector looks to be building good momentum as we approach the middle of 2024, highlighted by activity increasing at the fastest pace in two years during May."
Jordan Smith, technical director at consultant Thomas & Adamson, added: “The Construction PMI figures are encouraging, but there is a lot going on beneath the surface.
"We’re certainly beginning to see more stability and signs of future growth. However, the market is still challenging, with a number of projects either being paused, pushed out, or held at early design stages because of issues relating to cost, viability, and the level of returns on investment."
Construction accounts for around 6% a relatively small part of the UK economy, compared to services which is the biggest constituent by far followed by manufacturing.
The reading for UK GDP in April is due next Wednesday and will be seized upon by both parties in the election run-up as both the Tories and Labour have made the economy a key plank of the hustings.
In the first three months of 2024, the UK economy rebounded by an unexpectedly strong 0.6%.