Construction sector sees boost in job creation
(2 minutes to read)
Recent findings have shown a robust and accelerated rise in construction activity during the last month.
The latest IHS Markit/CIPS UK Construction Purchasing Managers’ Index revealed that UK construction companies achieved a stronger expansion of business activity levels during July, underpinned by the fastest increase in residential work for just over two-and-a-half years.
It also indicated that new business growth gained momentum, which contributed to the largest rise in employment numbers since December 2015.
Construction contractors will be particularly pleased to learn that rising sales volumes helped to boost job creation, with the rate of employment growth the fastest in nearly three years.
Tim Moore, Associate Director at IHS Markit and author of the IHS Markit/CIPS Construction PMI, “July data reveal an impressive turnaround in the performance of the UK construction sector, with output growth the strongest for just over one year.
“While the recent rebound in construction work has been flattered by its recovery from a low base earlier in 2018, there are also signs that underlying demand conditions have picked up this summer. New business volumes expanded at the strongest rate since May 2017, while workforce numbers increased to the greatest extent for just over two-and-a-half years.”
Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, said, “Purchasing managers were busier than ever this month with a welcome surge in new orders and the fastest rise in construction work since May 2017.
“Looking ahead, though optimism remains at lower than average levels, with the biggest rise in job creation since December 2015, there’s some conviction that the future is brighter, at least in the short-term. Bearing in mind the sector has experienced a number of twists and turns over the last couple of years, we must all remain watchful for any return to uncertainty as Brexit approaches.”
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