There was a modest improvement in UK construction activity in May, although faltering confidence and increasing prices are weighing on the sector.
That’s according to the latest IHS Markit/CIPS Construction Purchasing Managers’ Index (PMI) data, which found that headline PMI remained unchanged on April at 52.5.
Commercial activity growth accelerated to a three-month high in May but "softer" expansions were also recorded in residential and civil engineering.
Meanwhile new order books contracted for the fourth time in the past five months amid "general uncertainty" in the sector.
Some companies suggested that the unusually good weather conditions had supported activity and enabled them to continue catching up after weather disruption earlier in the year.
Residential work remained the strongest of the three sub-sectors, although the pace of expansion eased from April’s 11-month high, which saw house building rebound after snow in March.
The commercial and civil engineering sectors also remained in growth for the second month running in May.
But new orders fell back, with respondents to the survey blaming political and economic uncertainty, subdued retail sector conditions and fragile business confidence.
Optimism towards future growth fell to a seven-month low in May, linked to fears of political and economic uncertainty and an expected slowdown in construction.
Job creation also fell to a four-month low and purchasing costs faced by construction firms increased sharply with the rate of price input inflation the steepest registered since February.
Sam Teague, economist at IHS Markit and author of the IHS Markit/CIPS Construction PMI said: "The May PMI data signalled an unchanged pace of activity growth across the UK’s construction sector since April’s somewhat underwhelming rebound, yet nevertheless indicating a recovery in the second quarter after the contraction seen at the start of the year.
"However, activity in May was once again buoyed by some firms still catching up from disruptions caused by the unusually poor weather conditions in March, and a renewed drop in new work hinted that the recovery could prove short-lived.
"Inflows of new business slipped back into decline, signalling the resumption of the downward trend in demand seen during the opening quarter."
Duncan Brock, group director at the Chartered Institute of Procurement & Supply, said: "The two millstones of uncertainty and weak economic growth gave the sector plenty to worry about this month, and whilst activity still grew, the lowest business confidence in seven months suggests the subdued pipeline of new work is having an effect.
"With a decline in new orders for a fourth time in five months, it was client hesitation and consumer diffidence towards spending that had construction activity stuttering.
"Higher prices for fuel, raw material shortages, higher labour costs combined with slow delivery times were further obstacles to growth as firms nervously assessed their workforce for much-needed talent and sub-contractors could name their price."
