The UK construction industry grew at its fastest
rate so far this year, driven by a strong performance in civil
engineering according to the latest Markit/CIPS UK Construction
PMI figures.
April saw output rise sharply to 53.1, up from March’s figure of
52.1 – above the growth threshold of over 50.0.
There was good news for the housebuilding sector as output in
the sector reached a four-month high. Civil engineering was once
again the strongest performing sub-sector. Commercial building
performance remained slightly subdued, posting only a slight
increase in April.
New work increased at its strongest rate so far in 2017 but was
still some way off its post-recovery peak in early 2014. The
rise in new work spurred on employment in the construction
industry, with employment growth at its strongest in almost a
year.
Another consequence of the increased workload was an upturn in
construction materials purchased in April. Builders were once
again faced with a rise costs due to the rate of inflation but
was some way off the peak of this at the start of the year.
Confidence in the industry’s future over the next 12 months
remains strong, with 49 percent of respondents expecting to see
an increase in work , with only 10 percent expecting to see a
decrease.
Tim Moore, Senior Economist at IHS Markit said: “April’s survey
reveals a positive start to the second quarter of 2017, with a
robust upturn in civil engineering activity helping to boost the
construction industry. There were also more encouraging signs
from the house building sector, as growth recovered to its
strongest so far this year. However, the performance of the
commercial building sector remained subdued in the context of
the past four years.
“UK construction companies noted that the resilient economic
backdrop helped to drive up client spending in April. Greater
workloads led to the fastest pace of job creation since May 2016
and a continued squeeze on sub-contractor availability.”
If you would like to read more articles like this then please
click here
