Construction activity steady but firms not recruiting

Aaron Morby 14 years ago
Share

Construction activity expanded in June at roughly the same pace as in May, but firms were less upbeat about future prospects, according to the latest purchasing managers’ survey.

The special index run by the Markit/Chartered Institute of Purchasing and Supply eased slightly to 58.4 in June from 58.5 in May, which was its highest since September 2007.

New order growth slowed moderately during the month, indicating some consolidation of the strong expansions recorded in the previous two months.

But the growth failed to create more jobs as concern over public spending cuts and VAT increases dampened confidence.

David Noble, chief executive officer of CIPS said: “Although the construction sector maintained steady growth in June, question marks loom over the sustainability of this recovery in the longer-term.

“Most tellingly, modest rises in order books did little to boost employment levels, and confidence over future activity dropped.

Meanwhile, curbing inflation continues to be a big issue because firms are nervous about passing higher costs onto to clients.

The sector is also bracing itself for another spell of troubled times following the public spending cuts and forthcoming VAT rises announced by the Government last month.

“A stark reminder of just how hard this sector has been hit is the handful of cranes currently dotting the skyline and the half-finished construction projects.

“Recovery in the second half of the year is likely to remain fragile and we are still a long way off seeing the industry operate the way it did pre-recession,” he warned.

Again housing was the strongest performing area, with a substantial expansion signaled during the month. Moreover, growth in housing activity was the sharpest since December 2003.

The increase in civil engineering activity also accelerated during June, and was the strongest in 27 months.
Civil engineering has been the weakest performing of the three sub-sectors in recent months, although expanded at a slightly faster rate than commercial-based construction in June.

The latest rise in commercial activity was solid, although slowed for a second successive month and was lower than the long-term average for the series.

Latest news

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
2 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
1 day ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
1 day ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
1 day ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
2 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
2 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
2 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
2 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
2 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
2 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
2 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
3 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
3 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
3 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
3 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
3 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
3 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
3 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
4 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
4 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
4 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
4 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
4 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
4 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
4 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
4 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
4 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
4 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
5 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
5 days ago

Contractor services