THE UK’s construction sector returned to growth in September, after a four-month period of decline.

A recovery in the building of residential properties was behind the upturn, identified by the Markit/Chartered Institute of Procurement and Supply’s UK Construction Purchasing Managers’ Index (PMI) The survey revealed that there was an increase in new orders from construction purchasing managers and that confidence amongst clients had improved leading to a recovery in business confidence for the next 12 months.

David Noble, group chief executive CEO at the Chartered Institute of Procurement and Supply, said: “The residential sector was the winner this month, as consumer confidence made a modest recovery post the EU referendum.

“Overall, the fastest rise in new orders for construction projects since April ended a four-month decline, and purchasing activity was at its highest since March.”

The PMI rose to 52.3 from 49.2 in August, rising above the 50 mark that divides growth from decline for the first time in four months.

This was unexpected as economists polled by Reuters had predicted that the PMI would fall to 49.0 in September.

Moreover, the housing market had shown signs of a decline with the Bank of England having revealed that in August the lowest number of mortgages in two years were approved by lenders.

Tim Moore, senior economist at IHS Markit, said: “UK construction companies moved back into expansion mode during September, led by a swift recovery in residential building from the three –and-a-half year low recorded in June. Resilient housing market conditions and a renewed upturn in civil engineering activity helped to drive an overall improvement in construction output volumes for the first time since the EU referendum.”

A number of survey respondents noted that Brexit-related anxiety has receded among clients, although it remained a factor behind the ongoing decline in commercial building work.

Mr Moore went on to point out that despite the upturn, the construction sector remains on a weaker growth trajectory than at the start of the year.

“Construction firms appear reasonably optimistic about the near-term outlook with confidence linked to the fastest rise in new orders since March and a more upbeat economic news flow in general. However, the sector remains on a much weaker growth trajectory than seen at the start of 2016, which contrasts with the export led-surge in manufacturing production during September.

“Not only are UK construction companies feeling the impact of subdued investment spending relative to earlier this year, but the weak pound has contributed to a sharp acceleration in cost inflation.”

He went on to cite the fact that there had been subdued investment in the construction sector and firms were paying higher prices for raw materials because of the weak pound.