Construction output as a whole rose above pre-virus levels in May, with the house building sector index the best performer, up to 66.3, up from 61.2 in April.
The overall construction index grew to 64.2 in May – its highest level since September 2014 – up from 61.6 in April.
Some 47 per cent of the PMI survey panel reported higher volumes of new work, with the surge in orders driven by strong demand for residential building work.
Duncan Brock, group director at the Chartered Institute of Procurement & Supply said: “Residential work was back in the top spot as house building rose at the quickest pace since August 2014, serving as an antidote to the recent scarcity in housing for lets or buy, and driven by consumer demand and a boost from the stamp duty holiday.”
Tim Moore, economics director at IHS Markit, which produced the index, said: “UK construction companies reported another month of rapid output growth amid a surge in residential work. Imbalanced supply and demand led to survey-record increases in both purchasing prices and rates charged by sub-contractors.”