September data highlighted an upturn in business activity across the UK construction sector for the first time since May, primarily driven by a recovery in residential building. New orders also rebounded during September, which ended a four-month period of sustained decline. Survey respondents cited improving confidence among clients and a reduced drag on demand from Brexit-related uncertainty. Reflecting this, construction firms indicated a further recovery in their business expectations for the next 12 months, with optimism the strongest since May. Just under half of the survey panel (45%) forecast a rise in output over the year ahead, while only 9% anticipate a reduction. However, the degree of confidence remained softer than that seen at the start of 2016.
