LONDON--House building activity in the U.K. grew for a 16th straight month in May, with new business and strong economic optimism boosting staffing levels further, a survey showed Tuesday.
But, activity moderated again from the sharp gains of the beginning of the year. And, sub-contractor and building materials remained in short supply, highlighting the height of demand for construction across the U.K..
Data firm Markit and the Chartered Institute of Purchasing & Supply's monthly index expanded for a 13th straight month, despite slipping to a balance of 60.0 in March from 60.8 in April.
The balance is calculated by subtracting the number of respondents who said activity fell from those who said it rose, with a figure above 50 showing expansion, while below means contraction.
Residential house-building remained the top performer among construction sectors in May. The slowdown in the pace of growth was due to slower business growth in commercial building projects, while civil-engineering recovered somewhat from the slower pace of activity in April.
"Output growth hit a seven-month low in May, but the U.K. construction sector is enjoying its strongest overall phase of expansion since the summer of 2007," said Tim Moore, Markit's senior economist. "The latest survey highlights that the construction sector is now experiencing its longest period of job creation for six years."