UK construction industry grows for 5th consecutive month
Posted by TD Admin on October 2, 2013
Optimism for the future of the UK construction industry would appear to be at its highest point since April 2010.
The seasonally-adjusted Markit/CIPS Purchasing Managers’ Index slowed fractionally to 58.9 in September from a near six-year high of 59.1 during August. But the index was above the 50 baseline indicating growth for the fifth month running, and signalled a “sharp expansion of overall construction output”. This means that this has been the best quarter of growth in construction since the second quarter in 2010.
The strongest performing sub-sector was residential construction and commercial building activity increased at the most marked pace since May 2012, while growth of civil engineering activity eased from August’s recent high.
The third quarter of 2013 ended with output growth riding high amid greater spending on infrastructure projects and resurgent house building activity.
This is welcome news and hopefully industry suppliers will be able to keep pace with the increased pressures that will be brought by additional purchasing activities, and that their performance will not deteriorate and act as brake on the sector.