Residential construction activity is ‘keeping the flame alive’

There was another healthy increase in housebuilding levels last month, albeit at a slower pace than in the third quarter of 2020, the latest figures show.

Housebuilding outperformed all other areas of the construction industry, which as a sector has seen activity levels drop for the third consecutive month.

The latest bellwether IHS Markit/CIPS UK Construction Total Activity Index dropped to 53.1 in October from 56.8 in September. This is lowest level since the industry started to improve in June following the easing of lockdown restrictions across the UK.

Residential work had a strong month, with an index at 62.4, and commercial work also increased.

There was a sharp decline in civil engineering activity, with a reading of 36.4, significantly below the 50 no-change mark

Gareth Belsham, director of property consultancy Naismiths, believes that it is concerning that the industry’s activity levels are increasingly unbalanced.

He commented: “With infrastructure work plunging back to levels not seen since the dark days of May and commercial property construction slowing too, residential building is keeping the flame alive.”

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