Housebuilding saves construction sector from collapse

Recent data indicates that housebuilding has prevented a significant downturn in the construction sector, with residential work rising to 50.7 in June, surpassing the neutral benchmark of 50. Despite a rise in stamp duty rates potentially dampening demand, firms reported an increase in new projects and sales pipelines. However, other areas like commercial and civil engineering faced declines, with commercial activity dropping sharply. Staffing numbers continued to decrease due to higher employment taxes set by Chancellor Rachel Reeves, while material costs rose. Matt Swannell from EY ITEM Club noted that "recent PMI readings appear to have been overly pessimistic," suggesting that while the sector faces challenges, there are signs of resilience.

City AM (04/07/2025)   Daily Mail (04/07/2025)   The Daily Telegraph (04/07/2025)