Barratt vows to repay furlough salaries

The UK construction industry surged back to growth in June as the phased restart of building work helped to drive a sharp turnaround for the sector.

The closely followed IHS Markit/CIPS construction purchasing managers’ index (PMI) surged to a reading of 55.3 last month, from 28.9 in May.

A consensus of analysts had forecast a reading of 46 for the month. Any reading above 50 represents an expansion in business activity.

Tim Moore, economics director at IHS Markit, said: “June’s survey data revealed a steep rebound in UK construction output as more sites began to reopen and the supply chain kicked into gear.

“As the first major part of the UK economy to begin a phased return to work, the strong rebound in construction activity provides hope to other sectors that have suffered through the lockdown period.”

The influential survey signalled the steepest pace of growth for the sector since July 2018, as supply chains for the UK construction sector reopened following stoppages and business closures due to the lockdown.

Around 46% of survey respondents reported an increase in activity in residential building, while only 27% said they experienced lower activity.

Meanwhile, Barratt Developments yesterday said it would repay the government all the furlough money it claimed to cover the salaries of its staff while they were unable to work.

The house-builder said its finances are good enough to repay the salaries of around 6,700 workers who were sent home during the pandemic.

Barratt had already topped up the pay for its furloughed employees, who represented around 85% of the builder’s workforce. They have all now returned to work, barring a few vulnerable members of staff who are shielding.

Barratt said all its operational sites reopened by June 30, after having been closed for several months.

Picture: PA. Barratt said it will repay the furloughed salaries of 6,700 workers.