The construction sector grew at a slower rate during May according to The Markit/CIPS construction PMI (a measure of building activity) which reflected a slow down in commercial space however the overall outlook remains strong due to a surge in house building.

 

There's no need to worry though, we're still in a very strong position, just below expectations. Chief UK economist at Berenberg Rob Wood, commented: "Construction is still booming despite the PMI slipping back a little in May. Construction had a bad recession as the government slashed investment projects and the housing market crashed. But the economic recovery is driving a sharp upturn. Low interest rates, rising confidence and surging house prices are combining in a sweet spot for the sector."

 

A key indicator about the performance of the construction sector comes in the form of employment, which has increased again for the twelfth month in a row, growing again at a pace higher than April.

 

Senior economist at Markit, Tim Moore expanded by saying: "Output growth hit a seven-month low in May, but the UK construction sector is enjoying its strongest overall phase of expansion since the summer of 2007. Residential building remains a key engine of growth, with survey respondents citing another surge in new house building starts during May.

 

"Strengthening demand for construction staff arrived amidst the fastest drop in subcontractor availability since August 1997, which in turn contributed to a survey-record rise in sub- contractor charges in May."

 

There's still some way to go before Construction output gets back to its pre-crisis peak (we're currently at around 10% under that point) which is positive news suggesting there's plenty of growth in the sector.