Construction growth levels in the U.K. continued to show modest recovery in May from the snowy start to the year, but were unchanged from April, according to the latest index Monday from financial services company IHS Markit, and the Chartered Institute of Procurement and Supply.
With the index remaining at 52.5 for the second month running, growth in the industry is subdued, the report said. The index measures the activity levels of purchasing managers in the construction industry.
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Of the three construction sectors analyzed, residential construction was the strongest performer in May, according to the report.
"It’s encouraging to see the housing sector put in a strong performance for a second month running, after stumbling at the beginning of the year," said Duncan Brock, group director at the Chartered Institute of Procurement and Supply, in the report.
With only small improvements in the commercial and civil engineering sectors, "residential building is keeping construction’s head above water," Mr. Brock said.
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The U.K.’s recent—and unusually good—weather conditions have aided activity, enabling a catchup in construction after the disruptions following March’s snow. But continuing Brexit concerns and uncertainty caused some projects to be put on hold or delayed last month, the report said.
"It’s likely that the construction sector’s performance will be a slow and steady crawl through the second quarter, as the spectre of Brexit continues to dominate, and the double pincer movement of few orders, and higher costs, could see the sector stutter further," Mr. Brock said.