Growth in the UK’s construction industry reached its highest point for more than two years last month. Part of the surge has been blamed on new planning laws introduced by the Labour government, pitted to ignite activity. All sectors of the construction industry, from commercial property to housing and infrastructure, are growing dramatically.

The construction sector in the UK grew last July at its fastest pace for over two years. That is great news, not only because it speaks of the strong bounce the economy has managed to recover from the slack last year. The boost also partly came as a result of new changes in planning laws introduced by the Labour government, which were considered more encouraging of building and development.

The latest report from S and P Global Market Intelligence, the industry is doing well and has faith in its future prospects. It shows that every sector of the construction industry, from commercial buildings to individual house building and infrastructure projects, are all on firm ground. According to Andrew Harker, the head of economics at S&P Global Market Intelligence, these factors make the outlook promising. He said that this slowdown in growth, first noticed in June, was only temporary.

The growth rate picked up in July. Businesses from the construction industry noted the most new orders and fastest growth since 2022. This was slightly due to some projects now underway that were delayed previously. Reports of improved customer confidence fueled this growth.

For instance, the PMI is one of the tools that are used to establish the level of activity in the Construction Sector. The index expanded from 52.2 in June to 55.3 in July. This is the highest level since May 2022, with a reading above 50 indicating growth in the sector.

Jordan Smith, a technical director at property consultancy Thomas & Adamson, commented on the growth. He said that construction activity is picking up again. There is a real buzz around the new plans announced by the government and the opportunities it gives for further growth in the whole sector.

One of the main factors behind this rise was that businesses won more new work. July marked the sixth successive month of expansion for new business. This collective growth is a sign that the sector is finally needed.

Kelly Boorman, head of construction at audit, tax, and consulting firm RSM UK, also commented on the strong performance of the sector. She said that during the month of July, the PMI hit its highest since May 2022, pointing to a good recovery in the sector. Boorman said this could be due to greater clarity around local housing targets that the government is bringing, along with more transparency in the planning process.

Essentially, the UK’s construction industry is received a strong impetus from recent changes to planning laws. All areas of the industry have witnessed growth, and new business in the industry has shown an increasing trend. Needless to say, the recovery and growth of the industry will further gain momentum in the following months on the back of these trends.