Construction sector sees significant growth
(2 minutes to read)
Umbrella company contractors working within the construction sector will be interested to hear that latest research has revealed positive news for the industry.
The latest Markit / CIPS UK Construction Purchasing Managers’ Index (PMI), has shown that UK construction companies signalled a positive end to the year, led by the fastest rise in new order volumes since January 2016.
Stronger demand has resulted in a broad-based upturn in business activity during December and sustained job creation, with the latest rise in employment being the fastest since May.
According to the data, it was residential building activity that remained the best performing sub-category at the end of 2016, with the latest expansion of housing activity being the fastest since January. Work on civil engineering projects also picked up at a robust pace in December, while commercial construction increased slightly.
Tim Moore, Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI®, commented, “December’s survey data confirmed a solid rebound in UK construction output during the final quarter of 2016.
“Housebuilding remains a key engine of growth for the construction sector, with the latest upturn the fastest for almost one year. Meanwhile, commercial activity was the weakest performing category in December, reflecting an ongoing drag from subdued investment spending and heightened economic uncertainty.”
David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, added, “The residential sector raced ahead this month, with the fastest pace of growth since January 2016. Strong pipelines of new work were reported across all sub-sectors, and construction firms showed improved confidence after the impacts of uncertainty around the EU referendum.”