Figures from the BuildOnline/CIPS Construction Purchasing Managers’ Index showed the sector’s strongest growth overall since June, at 59.9.
Commercial construction was the strongest division at 60.2, growing at its fastest rate for three months.
Supply bottlenecks caused by the recent fuel shortage, another surge in world oil prices and a shortage of materials all pushed prices up and may threaten industry growth.
Growth in recruitment levels has also fallen to the slowest rate since last November. Use of subcontractors also increased slightly, although their quality and availability dropped.
The index found that growth in the housing sector was continuing to slow down, and was at its weakest point since February at 54.8.
This was backed by a survey from the Nationwide Building Society that said the housing market is slowing down after the average house price increased just 0.4% in September. Over the past six months, the average property’s value rose 2%.
