The UK construction industry expanded at the fastest pace in six-and-a-half years in March, according to a closely followed survey.
The construction purchasing managers’ index (PMI) rose to 61.7 in March, up sharply from 53.3 in February, according to data provider IHS Markit.
It was a “surge” in output, said Tim Moore, economics director at IHS Markit.
He said: “Total activity expanded to the greatest extent for six-and-a-half years as residential spending remained robust, commercial projects restarted and infrastructure contract awards moved ahead.
“Improving confidence among clients in the commercial segment was a key driver of growth, with development activity rebounding in sectors of the economy set to benefit the most from the improving pandemic situation. The increasingly optimistic UK economic outlook has created a halo effect on construction demand and the perceived viability of new projects.”
The banks have also started lending more money again which has helped businesses find finance for construction machinery for various projects.