Buyers report rising workloads

Grant Prior 12 years ago

Construction continued to grow in November thanks to a rise in residential work according to the latest survey of industry buyers.

The Markit/CIPS UK Construction PMI index for November hit 53.3 where anything above represents growth.

The figure was a slight fall on October’s five-month high of 53.9.

Sarah Bingham, Economist at Markit and author of the UK Construction PMI said: “UK construction output rose again in November, supported by an increase in new business wins.

“The rate of expansion slowed since October and was only modest, highlighting the wider economic headwinds currently facing the sector, but the ongoing expansion suggests that the sector may provide a positive contribution to economic growth in the fourth quarter.

“Residential construction returned to growth, ending a five-month sequence of decline. This followed data released from the Bank of England showing that mortgage approvals for house purchases were at their highest in October since December 2009.

“However, the increase in commercial output weakened, and work on civil engineering projects was little changed on October.

“The outlook for the sector remains challenging, with confidence over future activity levels still subdued.

“Construction companies’ main concern is that wider economic uncertainty will impact negatively on clients’ spending decisions. It will be interesting to see if the government’s infrastructure plans, announced in the Autumn Statement, will lift construction industry confidence from its current low level.”

David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply, said: “This month saw a slow but steady rise in activity for the UK construction sector.

“While growth was slower than October, construction companies are reporting a rise in new contract wins, which suggests an increased willingness to invest in new projects, a reason for optimism.

“It is great to see that the positives are also filtering through to employment with the rate of job creation in November at its fastest in over three-and-a-half years.

“The rise in activity within the housing sector is particularly progressive, but as this growth is coming from such a low base it doesn’t herald the start of a new dawn.

“Furthermore, construction companies remain cautious about the next few months and highlight the lack of government spending as a particular threat to future business activity.

“Raw materials, energy and fuel prices continue to hinder the sector, construction companies cite these as the main contributing factors for high input prices which have increased for the twenty-second month running.”

Latest news

£500m southern highways framework up for renewal

Ten firms face fight to retain places on major councils roads framework
2 hours ago

Engineering losses halve Briggs & Forrester profit

Main engineering services arm suffers £1.6m loss
2 hours ago

Plans in for University of East London campus expansion

Work to start in early 2024 on 280,000 sq ft Stratford teaching and student rooms scheme
2 hours ago

CITB told to improve by Ofsted inspectors

Number of in-house apprentices drops as training body changes business model
11 hours ago

IHP wins £100m Derbyshire mental health projects

Vinci/McAlpine JV will build two 54-bed Adult Acute Care units
37 mins ago

Align hits key milestone on HS2 Colne Valley viaduct

Engineers rise to the challenge to complete first V-piers in lakes
2 hours ago

£9.3bn race starts for National Grid construction partners

Plan for Great Grid Upgrade Partnership to be set out at bidders day in early June
1 day ago

Plan approved to redevelop major Glasgow shopping mall

Outline plan backed for demolition of St Enoch centre for over 900 homes, shops and leisure space
1 day ago

Banned demolition boss wins appeal to remain a director

Paul Cluskey wins Court appeal to remain director of Cantillon but steps down as MD
2 days ago

B&K confirms £140m Leeds build to rent project

Work to start on Whitehall Riverside twin blocks for client Glenbrook
2 days ago

McLaren Property to revamp Liverpool roller skating site

242-bed student scheme unveiled for sensitive site
1 day ago

Wates names Midlands construction chief

Matt Johnson promoted after just 10 months at family-owned builder
2 days ago

Glencar lands £28m Peel Ports Liverpool shed job

240,000 sq ft Alexandra Docks warehouse will be five football pitches long
2 days ago

Private equity giant buys United Living

US based investment group Apollo makes latest swoop on UK construction market
2 days ago

Quartet secure Thirteen Group £500m new homes deal

Esh, Morris & Spottiswood, ReGen and Henry Boot secure spots on new build framework
2 days ago

Luton Town FC to start new stadium before end of 2023

Talks already underway with contractors ahead of submission for detailed planning this summer
2 days ago

Plans for renovation of historic Cardiff Market

Subject to planning and final funding work could start next year
2 days ago

£53m race to cut Magnox reactor buildings down to size

Trawsfynydd reactor buildings to be reduced in height by a third
2 days ago

Cyclist dies in lorry collision outside Keltbray site

Work shut down after fatal collision with truck delivering to central London site
6 days ago

Another demolition director banned after bid rigging probe

Brown and Mason boss becomes fourth director disqualified after cartel investigation
6 days ago

Five hospitals at risk of collapse added to new build programme

Weak concrete crisis and soaring costs force £20bn hospital programme rethink
7 days ago

Scottish South West Hub names new partners

Balfour Beatty joins construction partners for first time
6 days ago

RC frame specialist Getjar revenue tops £100m again

Profit margins nearly halved in face of labour and material price rises
6 days ago

London’s Camden Council advances £470m King’s Cross scheme

Camley Street scheme to consist of 350 homes and 200,000 sq ft of offices
6 days ago

Vinci issues fraud alert to suppliers

Subcontractors targeted by scammers posing as main contractor
7 days ago

Solar panels set to cover commercial buildings

Latest government taskforce targets power potential of non-residential roofs
6 days ago

Quantum Construction collapse costs suppliers £4.3m

Liquidator reveals scale of debts at Staffordshire contractor
1 week ago

Jaguar Land Rover set to build huge gigafactory in Somerset

The vast battery plant would be one of the biggest buildings in the UK
1 week ago

Tender race starts for £95m Victoria Tower repair job

Up to five firms will be invited to bid with work set to start by end of next year
1 week ago

Go-ahead for Brum iconic curved truss HS2 bridge

Balfour Beatty Vinci will carry out one of the largest bridge launches in the UK
1 week ago

Contractor services