Umbrella company contractors working within the construction industry will be pleased to learn that the sector is experiencing a steep rise in activity.
The latest Markit/CIPS UK Construction PMI has revealed that higher levels of construction output have now been recorded for 12 months running. UK construction companies continued to report strong output rises during April, with all three broad categories of activity registering robust growth.
The rise in housing activity has been one of the key factors behind the sector seeing such significant growth.
Tim Moore, Senior Economist at Markit and author of the Markit/CIPS Construction PMI, commented on the findings, “Construction growth has started to moderate from the rapid pace seen over the winter, but strong rises in new work and payroll numbers provide ample optimism that output will expand strongly over the course of 2014.
“Better economic conditions, a surge in house building, improved access to finance and greater investment spending are all important tailwinds for UK construction growth this year. Moreover, the latest survey is another indication that current UK construction trends are healthier than the relatively meagre official growth estimates so far this year.
Commenting on the report, David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply, added, “While the rate of growth slowed slightly in April, the construction sector is still experiencing a remarkably strong and consistent period of expansion. Positive news abounds as housing activity reached a near ten-year high and the sector as a whole benefitted from the sharpest rise in new business since January this year. This, alongside improving economic conditions, continued to drive strong job creation, giving further cause for optimism about the future.
“House building was again the leading light in April, with growth now running for the longest continuous period since 2006/2007. This was further supported by a solid expansion in commercial activity; meanwhile civil engineering showed some signs of moderation, as companies looked for new work to replace flood relief activity.
Simon Dolan is the Sales & Marketing Manager for Contractor Umbrella Ltd, one of the UK’s Most Respected Umbrella Companies and founder member of AllUmbrellaCompaniesAreEqual.
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