21/08/2024
The UK construction sector has experienced its fastest growth in over two years, according to the latest data published on 6th June 2024. The S&P Global Construction Purchasing Managers’ Index (PMI) reached an impressive score of 54.7 in May 2024, up from 53 in April, indicating a significant increase in construction activity. A score above 50 on the PMI signals expansion, and this latest reading marks the highest since May 2022, reflecting a level of growth not seen since the period between the Covid lockdowns and the former chancellor Kwasi Kwarteng’s mini-Budget.
Devine Group’s Newest Project In Thatcham Working Alongside Persimmon Homes
The momentum continued into the third quarter, with the index further climbing to 55.3 in July from 52.2 in June, well above the no-change mark of 50. This marks the fifth consecutive month of expansion for the construction sector, driven largely by a resurgence in the housing market and robust growth in civil engineering, which recorded its most rapid expansion in nearly two-and-a-half years.
Survey respondents credited the increase in activity to the successful landing of new orders, with new business growing for the sixth month in a row. The pace of new order growth in July was the strongest since April 2022, fueled by a general improvement in market demand and a noticeable increase in customer confidence. Many clients who had previously paused projects have now resumed them, contributing to the sector’s increased performance.
Nigel Jordan, Managing Director of Devine Group, commented, "The recent surge in construction output is an encouraging indicator of the sector’s strength. We're particularly optimistic as we see new projects coming to fruition, including our work in Thatcham alongside Persimmon Homes and our ongoing commitments at North Whiteley with Vistry Group, Crest Nicholson plc, and Barratt Developments plc. The future looks bright, and we’re excited about the opportunities ahead."
Despite optimism, the outlook remains positive, with nearly 53% of respondents predicting further growth in activity over the next 12 months. The ongoing improvement in client confidence is expected to continue driving new orders and construction activity, sustaining the sector’s upward trajectory.
Devine Group is a privately owned Group of Companies established in 1974. Every successful business needs a solid foundation to build from. In June 1974 the owner and Chairman Mr. Jim Devine set out to build a group of companies based on a rock of financial stability. Minimal debt, cash reserves and an attitude to continually reinvest back into the business. Our core business elements are Infrastructure, Groundwork, Plant Hire, Development.
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