The UK construction sector’s recovery gathered pace in May as it grew at the fastest rate for two years, according to new data.

Building firms said momentum improved on the back of rising workloads, which drove them to take on more staff and buy more materials.

The latest S&P Global construction purchasing managers’ index (PMI) scored 54.7 in May, jumping from 53.0 in April.

It was significantly stronger than expected, after analysts predicted a reading of 52.5 for the month.

Any score above the 50.0 threshold indicates that activity in the industry is increasing, while anything below means it is shrinking.

Andrew Harker, economics director at S&P Global Market Intelligence, said: “The UK construction sector looks to be building good momentum as we approach the middle of 2024, highlighted by activity increasing at the fastest pace in two years during May.

“Particularly pleasing was the broad-based nature of the rise in activity as work on housing projects increased for the first time in more than a year and a half.

“Firms are gearing up for further growth in the months ahead, posting renewed expansions in both employment and purchasing activity as workloads increase.”

It was the first time since May 2022 that the monthly survey showed growth across the three core parts of the sector: housing, commercial construction and civil engineering.

Residential work grew marginally for the month, while commercial building saw particularly strong growth, rising to a two-year high.

Surveyed businesses said the improved performance reflected “sustained growth of new order”, as new business increased for the fourth consecutive month.

The improvement in orders led to the first rise in employment in the sector for five months.

Barry Goodall, partner and head of construction at Brabners, said: “A third consecutive month of growth adds to the belief that the construction sector has turned a corner as economic conditions continue to improve.

“While it remains a ‘watch’ industry for insolvencies, the many contractual challenges we saw arise amid the period of rampant inflation have begun to ease and firms are planning ahead with greater certainty around input costs and interest rates.

“If the latter fall as anticipated, we can expect a relatively positive second half to the year with demand also likely to be boosted by the momentum provided by an early General Election.”