Construction Industry Update – June 2024

Construction Growth Hits Two-Year High

The ongoing recovery in the construction sector continued in May, a new survey showed, as an upturn in commercial property helped push activity to its highest level in two year.

S&P’s Purchasing Manager’s Index (PMI) for the construction sector rose to 54.7 in May, up from 53.0 in April. Anything above 50 indicates growth.

All three subsectors – Residential, Commercial and Civil Engineering – Registered expansions for the first time since may 2022 after housebuilding returned to a expansion for the first time since October 2022.


Construction Failures back up after brief dip

Construction administrations crept up again last month, but expert suggest greater client confidence could improve conditions in the near future.

Twenty-three construction firms went under in May, according to Creditsafe. The latest toll brings the total number of failed construction firms this years so far to 115, down from 154 by may last year.


SMEs eye higher order volumes but lack access to finance

Accessing finance is becoming increasingly difficult for SME’s, according to new date from the British Chambers of Commerce.

Nearly half (49%) of businesses surveyed who sought finance reported that obtaining funding has become more challenging over the past three years, with only 13% noting an improvement. The BCC’s latest survey, which assessed business conditions among 553 firms, primarily SME’s found that most (70%) had not accessed external finance in the past year.

Larger firms, those with more than 50 employees, were more likely to have sought finance (72%) compared to smaller firms (58%).