Construction in strongest growth since 2007

Grant Prior 14 years ago
Share

Construction activity in April grew at its strongest rate since September 2007 as house building and commercial work continue to push the industry towards recovery.

The second successive month of growth was highlighted in the Markit/CIPS Construction Purchasing Managers’ Index survey which also showed civil engineering work contracting at its slowest rate for 23 months.

Hopes of a private-sector led recovery were also voiced by consultant WSP in a Stock Exchange statement today which said: “In the UK we have seen early signs of increased activity in the private sector and we wait to see if this continues.”

The Markit survey revealed that construction employment is still falling as firms recorded their 23rd successive month of job cutting.

The use of subcontractors also fell during April but at the slowest rate since February 2008.

Sarah Ledger, economist at Markit said: “Growth of the UK construction sector was sustained for a second consecutive month in April, with increased activity in both the residential and commercial construction sub-sectors arising from improved new contract wins.

“However, reflective of the impact of the twenty-four month recession in the industry, employment is yet to rise. Nonetheless, optimism over future business prospects continued to improve, despite sustained concerns over potential cuts in government spending.

“This suggests that growth in private business may help to offset any impending weaknesses in public sector demand.”

David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply, said: “It’s encouraging to see the construction sector show signs of recuperation for the second month running and suggests that the whole UK economic recovery has real substance.

“Though the industry is moving in the right direction, we mustn’t be lulled into complacency as growth is coming from a very low base and operating conditions are still very difficult.

“While purchasing managers noted a growing appetite for new contracts – especially in the housing and commercial sub-sectors, civil engineering is still a sore spot with little activity.

“Looking forward during election week, it’s a worry considering what impact post-election spending cuts and rising input-price inflation might have on the sustainability of the sector’s recovery.

“More worrying still – we are yet to turn the corner and see an end to the 23 months of relentless job cuts.”

Latest news

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
9 hours ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
13 hours ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
1 day ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
14 hours ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
12 hours ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
12 hours ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
1 day ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
13 hours ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
2 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
2 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
2 days ago

New scheme fuels London lab building boom

Plans in for 160,000 sq ft Whitechapel scheme near Royal London hospital
2 days ago

Contract race starts for next £155m section of A9 dualling

Prior Information Notice published for Tay Crossing to Ballinluig stretch
2 days ago

£55m Sheffield build-to-rent scheme approved

Demolition to start later this year for 158-flat Sheffield Garden project
2 days ago

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
2 days ago

Gas supplier Regent to buy TClarke for £90m

£491m turnover listed building services specialist to be sold
3 days ago

Steel contractor Billington launches into bridge market

Steelwork firm hires staff from failed architectural and bridge specialist SH Structures
3 days ago

McGee employees benefit from rise in profits

Pre-tax profit doubles boosting payouts for Employee Ownership Trust
3 days ago

Lendlease veteran is latest new McAlpine director

Paul Sims joins as Operations Director after 40 years at rival contractor
3 days ago

Costain signs site labour supply deal with four firms

Contractor to use only a quartet of providers for temporary labour supply
3 days ago

BAM go-ahead for Leeds 200,000 sq ft office

Latitude Yellow will complete final plot at Doncaster Monk Bridge site
3 days ago

VolkerFitzpatrick wins £30m logistics job

Latest deal to build five distribution units for Prologis UK
3 days ago

Trio win new Scape utilities consultancy framework

Perfect Circle, AtkinsRéalis and Arcadis win places on
3 days ago

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
4 days ago

Wates-owned SES restructure delivers record profit and revenue

Building services contractor revenue soars to almost £300m
4 days ago

25 groundworks firms win £100m Places for People deal

M&J Evans, Carmac and Churngold Construction feature in housing association's line-up
4 days ago

Energy efficiency firms angry at lack of CITB support

SME contractors funding bid "does not meet the current criteria for supporting productivity or EDI"
4 days ago

£400m South Cambridge science park approved

Outline approval allows former sewage treatment works to be demolished
4 days ago

McLaren gets green light for 45-storey Leeds tower

Landmark Wellington Square scheme will see 464 flats built with 360,000 sq ft of offices
7 days ago

Heavy rain causes 1.9% construction output fall

Hopes remain undampened of a resi-led recovery this summer
7 days ago

Contractor services