- Construction PMI 54.3 vs 55.5 expected and 57.2 prior.
Key findings:
- Civil engineering remains best-performing category, followed by commercial work.
- Renewed decline in house building.
- Business optimism slips to ten-month low.
Comment:
Tim Moore, Economics Director at S&P Global Market Intelligence, said:
"The construction sector signalled another month of solid output growth in October, despite being unable to match the highs seen in September. Business activity expansion was once again led by civil engineering work. Survey respondents widely commented on strong demand for renewable energy infrastructure projects.
Commercial construction activity also increased again, albeit at the slowest pace since the current phase of expansion began in April. Improving domestic economic conditions helped to boost demand, but some construction companies reported delayed spending decisions ahead of the Autumn Budget. October data meanwhile indicated a decline in overall residential construction activity for the first time since June.
Government policy uncertainty, fragile consumer confidence and elevated borrowing costs were all constraints on demand for house building projects. Total new work expanded at a solid pace in October, adding to signs of a robust improvement in order book pipelines across the construction sector in the second half of 2024.
As a result, construction companies added to their payroll numbers at an accelerated pace. However, business optimism remained relatively subdued in comparison to the highs in the first half of the year, with output growth expectations now the lowest since December 2023."
