Construction growth increases hiring levels

After a subdued end to 2021, the UK construction sector has gained momentum led by accelerated growth in commercial work.

The latest IHS Markit/CIPS UK Construction PMI® data shows that business activity in the UK construction sector increased for the twelfth consecutive month in January with strong pipelines of new work encouraging additional staff hiring.

Tim Moore, Director at IHS Markit, said, “UK construction companies started the year on a strong footing as business activity picked up speed and new orders expanded to the greatest extent since last August. The composition of growth has become more tilted towards commercial projects as house building lost momentum and civil engineering remained subdued.

“Commercial construction activity benefited from fewer concerns about the Omicron variant and strong business optimism about recovery prospects over the course of 2022.”

Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, added, “Builders enjoyed their best month since July, bouncing back from December’s doldrums as opportunities unfurled in terms of new orders, job creation and optimism offering a strong start to 2022.

“Pipelines of commercial work snapped back into action as businesses were more confident in their investment decisions and the sector came out on top with the strongest gap in output growth compared to the residential sector in almost six years.”

To find out more about contracting please contact Sophie on 01206 591 000 or email sophie.lewis@contractoumbrella.com.