The UK construction sector grew at the fastest pace for two and a half years in September.

The latest S&P UK construction PMI report found that, on a seasonally adjusted basis, construction activity was recorded at 57.2 in September, up from 53.6 in August and above the neutral 50.0 for the seventh consecutive month.

The figures mark the strongest upturn in activity for 29 months.

New work also expanded markedly, with rising demand attributed to increased willingness-to-spend among clients and a more supportive economic backdrop.

Residential construction recorded activity at 54.3 in September, the fastest growth since March 2022, attributed to improving market conditions and rising confidence. However it grew at a slower pace than the rest of the sector.

Civil engineering (index at 59.0) was the best-performing category, while commercial building (55.2) also gained momentum in September, with output levels rising to the greatest extent since May.

Survey respondents noted that lower borrowing costs and domestic political stability had a positive impact on client spending, while also mentioning tight budgets.

Of the figures, Shawbrook managing director Terry Woodley says: “The UK construction sector has continued to grow, with both commercial activity and new orders seeing sustained activity over the past month. No doubt this has been helped by the government’s recent focus on the sector, with increased housing targets, promises of more planning officers, and a proposed relaxing of red tape being well received by developers.

“With the Autumn Budget due at the end of the month, developers are turning their attention to what else the government may have in store, especially regarding the recent announcement on ‘brownfield passports’ which seek to support developers in acquiring urban sites. While more detail on the expected planning reforms are needed, it is encouraging to see the government doing more to bolster the sector and bodes well for the long-term outlook