However, new business growth was modest and the slowest since February. Some construction companies said uncertainty due to the general election caused a decrease in the inflow of new work.
That said, the pace of job creation in the sector increased, with construction companies hiring more workers for the second month in a row and the the pace of job creation was the fastest since August last year.
Companies also steadily expanded their use of subcontractors, with the latest increase in supply the largest in nine months.
Input costs rose only slightly in June as some suppliers limited price increases to secure new business. And inflation rose on rising costs for some raw materials, but remained well below the series average.
“While there were signs of a slowdown in the latest survey period, particularly in residential construction activity, firms indicated that a slowdown in new orders growth was partly related to election uncertainty,” said Andrew Harker, chief economic officer at S&P Global Market Intelligence. “So we can expect an improvement in trends once the election period is over.
“In addition, confidence in the outlook for the year ahead remained strong and companies increased employment at the fastest pace in the past ten months.
“Inflation-wise, there is still little sign of cost pressures building up to any great extent, encouraging companies to expand their purchasing activities. Supply chain conditions also remained supportive.”
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