Construction contractors see higher demand within sector
(2 minutes to read)
Latest findings have revealed positive news for the construction sector, with contractors working within the industry seeing higher demand.
Findings from the Markit/CIPS UK Construction Purchasing Managers' Index (PMI) revealed that data from November indicated that the UK construction sector continued to rebound from the weak patch recorded on average during the third quarter of 2016.
Business activity and incoming new work increased at the strongest pace since March, although both rates of expansion remained much softer than the peaks achieved at the start of 2014.
It was also found that job creation was maintained across the construction sector in November, while the latest survey also highlighted the fastest rise in subcontractor usage so far in 2016.
Tim Moore, Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI®, commented, “UK construction companies experienced a steady recovery in business activity during November, which continues the rebound from the downturn seen over the third quarter of 2016. The brighter picture reflected another solid contribution from residential building and renewed growth in commercial work, which some companies linked to a resumption of projects that had been delayed after the Brexit vote.”
David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, added, “The sector was on a firmer footing this month, as a slight uptick in overall activity and the strongest level of new business growth since March, resulted in more stability after a summer of uncertainty at the time of the EU vote.”
“Higher prices were reported for a number of materials including bricks, blocks and slate, as businesses struggled with managing costs. Yet, in spite of this grip on precious margins, headcounts were increased and demand for subcontractors was also sustained.”