Activity in the UK's construction industry grew last month at its fastest pace since February, a survey suggests.
The Markit/CIPS Purchasing Managers' Index (PMI) for the sector rose to 58.1 in June from 55.9 in May. A reading above 50 indicates expansion.
Markit added that confidence in the sector about the coming 12 months was at its highest for 11 years. Residential house building remained the fastest growing area in the construction sector.
Looking ahead, nearly two-thirds of construction firms expect to see a rise in their activity as a result of increased investment spending among developers and robust demand for new residential projects.
Construction firms are also hiring staff at the fastest pace in six months the survey found.
Earlier in the week, the Office for National Statistics (ONS) revised UK economic growth for the three months to March up to 0.4% from an original estimate of 0.3%, based on stronger than previously calculated activity in the construction industry.
The upbeat construction survey contrasts with the Markit/CIPS PMI reading for the manufacturing sector, which indicated growth slowed to its lowest pace in more than two years in June. The manufacturing PMI reading fell to 51.4 in June from 51.9 the month before.
Richard Threlfall, head of infrastructure, building and construction at KPMG UK, said: “(These) figures confirm the acceleration in demand for UK construction. The industry will soon be running white hot, as housing, commercial and infrastructure demand are rising together.
“What we are seeing is very unusual. Private demand is rocketing in response to an improving economy and much stronger business confidence. And public demand is surging too, following the Government's post-election re-commitment to a huge infrastructure investment programme.
“The critical question is, can the industry deliver? I am concerned it cannot. The industry is about to be engulfed in a tidal wave of work but it’s struggling already with a huge skills shortage, weak Tier 1 balance sheets, and a lack of investment in capacity. I expect a lot more industry trauma as this story plays out.”
