However, new order growth eased to a five-month low and year-ahead business activity expectations were the least upbeat since October 2023.

At 55.2 in November, up slightly from 54.3 in October, the headline S&P Global UK Construction Purchasing Managers’ Index (PMI) – a seasonally adjusted index tracking changes in total industry activity – pointed to a robust and accelerated expansion of overall construction activity.

The headline index has been above the neutral 50.0 threshold for nine months. The most substantial rise in commercial work in two and a half years drove a faster upturn in construction output (index at 58.1).

Despite relatively subdued economic conditions, survey respondents commented on improving customer demand and new tender opportunities. Civil engineering activity (55.9) also expanded steadily in November. That said, the rate of growth slipped to a three-month low.

House building (47.9) remained by far the weakest-performing category of construction work in November. The respective seasonally adjusted index was inside negative territory for the second month in a row and signalled the fastest rate of decline since June.

Construction companies again noted that elevated borrowing costs and fragile consumer confidence harmed demand conditions.

New business volumes increased across the construction sector for the tenth successive month in November and at a solid pace. However, the rate of growth slipped to its lowest since June.

Some reports suggested that political and economic uncertainty linked to the Autumn Budget had affected client confidence. Where growth was reported, it was often linked to new projects in the commercial sector.

November data highlighted only a marginal rise in employment numbers, with the rate of job creation easing to a three-month low.

Anecdotal evidence highlighted increasing employment costs as a factor holding back staff hiring. Some construction companies commented on the greater use of subcontractors to help mitigate rising costs.

This was signalled by increased subcontractor usage for the first time since July. Nonetheless, the latest data pointed to the steepest increase in subcontractor charges in 16 months.