Construction Activity Accelerated in July in the United Kingdom

Construction activity in the United Kingdom in July accelerated, led by another strong showing in housebuilding. New orders increased for the second month in a row, as lockdown measures eased, and jobsite activity was able to restart. The latest building reading was the steepest increase in the U.K. since Octobre 2015. Pent up demand for residential building in particular, the strongest since Septembre 2014, was the main driver in July. Unfortunately, the pace of the recovery was not strong enough to prevent additional job cuts and the July pace was greater 58.1 than the June cuts 55.3. Building materials also experienced another round of cost inflation in July, reaching levels not seen since May 2019. Upward pressure on costs were being tied to an over-stretched supply chain, which is also extending leading times on delivery of product which is slowly starting to impact jobsite productivity.