Construction contractors see strong industry growth
Contractors trading in the construction industry will be pleased to hear that the sector is doing particularly well recently, with businesses ending Q3 of 2013 with strong output levels and an improvement in their new order books.
The Markit/ CIPS UK Construction Purchasing Managers Index (PMI) found that this has resulted in boosted employment numbers within the sector for the fourth consecutive month, and the rate of job creation reached its fastest for just under six years.
All three broad areas of the construction sector posted higher levels of business activity in September. Residential construction was the strongest performing of these sub-sectors, with the latest rise in output the fastest since November 2003. Commercial construction activity increased at the most marked pace since May 2012, while growth of civil engineering activity eased from August’s recent high.
Tim Moore, Senior Economist at Markit and author of the Markit/CIPS Construction PMI, said, “Construction is no longer the weakest link in the UK economy. The third quarter of 2013 ended with output growth riding high amid greater spending on infrastructure projects and resurgent house building activity.
“The reversal in fortunes has spanned commercial, residential and public sector construction projects. Moreover, builders are confident that a tide of new tender opportunities will continue to lift the construction sector in the months ahead, supported by improved development funding conditions and better underlying economic conditions.
“September’s survey suggested that constructors are beginning to react with confidence to the more positive landscape for the sector, as job creation and input buying both rose at robust rates over the month.”
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