91探花

According to the latest PMI data by S&P and CIPS, the headline construction PMI for October decreased to 54.3, down from 57.2 in September, which was the highest level since May 2022, and driven primarily by a sharp uplift in civil engineering activity to 59. The headline PMI in October also shows a slight reversal on the upward trend seen throughout the majority of 2024. 

The main contributors to the latest decrease were civil engineering activity, commercial activity and housing activity, which fell to 56.2, 52.8 and 49.4, with the latter falling below 50 for the first time since July. 

Kelly Boorman, national head of construction at 91探花, said: “The headline construction PMI fell in October, largely driven by the sharp fall in housing activity, which likely reflects uncertainty in the market, with buyers pausing on sales prior to the Autumn Budget. October also saw a drop in civil engineering, likely due to timelines of major projects. Civil engineering activity has been volatile since Q2 2024, therefore masking the wider impact of economic, legislative and geopolitical changes, making it difficult to get a clear read on the state of the construction sector. 

“However, the drop in the headline figure could also reflect industry cautiousness in the run up to the Autumn Budget. Despite the Chancellor’s £5bn investment to support national housing targets, businesses are still awaiting clarity on major infrastructure projects and the outcome of the National Planning Policy Framework, which will dictate how soon government’s housing strategy can be achieved. This, coupled with the Prime Minister’s pledge to remove anti-growth legislation and red tape will support housebuilders, reduce uncertainties and accelerate mobilisation, especially as housing transactions and mortgage approvals start to tick up. It will be interesting to see how this ramp up impacts suppliers’ delivery times and use of subcontractors, given labour shortages.”

She added: “The government’s £3bn allocated to SME builders does however signal a positive step, ensuring all construction businesses, no matter their size, contribute to the 1.5m homes target. While increased funding is important, its implementation and impact on projects is held back by the planning system and workforce constraints. Government must therefore address the role of Skills England and adoption of new technologies to support the industry’s transition towards more modern methods of construction, helping to bridge the gap between experience and innovation.”