UK: Commercial work gains momentum, helping to offset another sharp fall in house building

July data signalled a renewed expansion of overall construction output, following the marginal decline seen during the previous month. This was led by the strongest rise in commercial building since February and another solid contribution to growth from civil engineering activity. Meanwhile, latest data signalled another sharp reduction in residential construction activity. Survey respondents widely noted that higher interest rates and the uncertain UK economic outlook had constrained order books in July. Softer demand and fewer supply bottlenecks in turn led to the fastest improvement in vendors’ delivery times