Construction job creation at one year high

(2 minutes to read)

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Positive news for those working in the construction sector, as output growth reaches a seven-month high in June.

The latest IHS Markit / CIPS UK Construction Purchasing Mangers’ Index (PMI) shows a solid expansion of overall construction activity, underpinned by greater residential work and a faster upturn in commercial building.

There were also positive signs regarding the near-term outlook for growth, as signalled by the strongest rise in new orders since May 2017 and the largest upturn in input buying for two-and-a-half years.

Higher levels of new work contributed to faster increases in employment numbers with the pace of job creation accelerating to its strongest for one year.

Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, commented, “With the fastest rise in new orders since May 2017, it appears the brakes are off for the construction sector. Despite being hampered by economic uncertainty, firms reported an improved pipeline of work as clients committed to projects and hesitancy was swept away.”

Tim Moore, Associate Director at IHS Markit and author of the IHS Markit/CIPS Construction PMI, added, “The latest increase in UK construction output marks three months of sustained recovery from the snow-related disruption seen back in March. A solid contribution from house building helped to drive up overall construction activity in June, while a lack of new work to replace completed civil engineering projects continued to hold back growth.”

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