British construction PMI rebounds to 55.9 in May

British construction purchasing managers' index (PMI) rebounded to 55.9 in May from April's 22-month low of 54.2, said Markit Economics Limited Tuesday.

The data was higher than the market expectation consensus of 55.0, and registered the 25th month of exceeding the 50.0 activities expansion threshold.

Business confidence across the construction sector picked up sharply over the month, with the degree of positive sentiment the highest since February 2006, said the London-based data compiler.

Data showed that the modest rebound was driven by a sharp and accelerated increase in residential building activity, alongside a return to growth in the civil engineering sub-sector. Meanwhile, commercial building work expanded at the slowest pace since August 2013.

Staffing levels rose at a sharp and accelerated pace in May, with the latest increase in payroll numbers the fastest seen so far in 2015, figures also showed.

Tim Moore, senior economist at Markit, commented:" It is far from certain whether the relief rally in construction confidence will usher in a lasting turnaround in output volumes on the ground."

The Substantial supply chain pressures and acute sub-contractor shortages persisted during May, especially across British house building sector, in turn driving up operating costs and hampering productivity gains at construction firms, he added. Endit