Construction growth reaches four-month high

(2 minutes to read)

construction copy.png

November data has shown a solid expansion of overall output, with job creation accelerating to its fastest in three years.

The latest IHS Markit / CIPS UK Construction Purchasing Managers’ Index (PMI) revealed that growth of new work picked up since October and rising client demand strengthened a robust and accelerated expansion of employment.

Residential building reclaimed its position as the fastest growing area of construction work in November. The latest rise in house building activity was the strongest for three months. Latest data also pointed to sustained increases in commercial work and civil engineering activity.

Tim Moore, Economics Associate Director at IHS Markit, which compiles the survey, commented, “November data indicates that the UK construction sector remains in expansion mode, with resilient business activity trends seen for housing, commercial and civil engineering activity. The latest overall rise in construction output was the fastest since July, helped by a stronger contribution to growth from house building activity.

“Higher levels of new work were recorded for the sixth month running in November, which resulted in a robust and accelerated rise in staffing numbers. The latest upturn in employment was the fastest for almost three years. A number of construction firms noted that greater demand for staff had led to upward pressure on salaries in November.

“Business confidence regarding the year ahead outlook for construction work picked up from October’s recent low, but remained weaker than seen on average in the first half of 2018. Survey respondents widely commented that Brexit-related uncertainty had held back business optimism in November.”

Limited or Umbrella? If you are unsure which route would suit you better, please give us a call on 01206 591 000 or email info@contractorumbrella.com to discuss your options.

You may also like to read:

How does an umbrella company work?

Guides to contracting

Our main news hub

 

Still thinking about if you should join Dolan Accountancy?

Give us a call on 01206 591 000 or email amelia.bowlzer@contractorumbrella.com

dav1