UK construction activity rose for the forty-fourth consecutive month in July. The headline Construction Purchasing Managers' Index (PMI) - a seasonally adjusted index designed to measure the overall health of the construction economy - recorded 54.7, down from June's six-month high, but still indicative of solid growth.

Roy Ayliffe, Director of Professional Practice at the Chartered Institute of Purchasing and Supply, said: "Purchasing managers reported further growth in the construction sector in July, with the overall rate of expansion down just slightly from June's six-month high. Of particular note was housing, which built on last month's recovery to post its best performance in six months. New business continued its growth trend, rising now for almost seven years, while employment signalled only modest growth. Optimism in the industry rose to the highest in five months, as panellists were encouraged by robust demand and expansions in capacity."  

When questioned about their expectations for activity levels in twelve months' time, purchasing managers again expressed overwhelming confidence. Approximately six out of ten respondents expected activity to rise over the coming year, pointing to sustained strong demand conditions in the sector and, in the case of a number of firms, capacity expansion programmes to enable them to take on greater volumes of new work.

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