Buyers see bleak times ahead as output falls again

Grant Prior 12 years ago
Share

Construction buyers reported another fall in output last month as UK construction “remained rooted in contraction territory.”

The latest Markit/CIPS Construction Purchasing Managers’ Index edged-up to to 49.5 from 49 last time.

But any figure below 50 on the sentiment survey represents a fall in output and this was the first back-to-back sub-50 reading since the start of 2010.

David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply, said: “September’s figures show the construction sector’s cupboard to be well and truly bare, rounding off a disastrous quarter.

“After the longest continual decline in new orders for three years, this is of no surprise.

“Looking ahead, there is little to be positive about.

“Homebuilding continues to be hit hard, the commercial sector, so long the star of the industry, has lost its sparkle. That civil engineering has seen a moderate increase in activity, is scant consolation.

“This continued poor performance has been compounded by an increase in input prices reflecting rising cost pressures across the global economy.

“All of this, points to an ominous future. In the absence of investment of some kind, we are likely to see this level of activity continue for some time, or possibly even drop further.”

Tim Moore, Senior Economist at Markit and author of the Markit/CIPS Construction PMI, said: “UK Construction PMI data for September presents another bleak assessment of business conditions in the sector.

“The current stretch of falling new orders is now the longest seen for three years, reflecting shrinking underlying demand alongside delays in spending from both public and private sector sources.

“A lack of new projects meant that confidence in the business outlook remains close to its lowest since the UK economy nosedived into recession during 2008.

“An upturn in civil engineering output was overshadowed by downturns in house building and commercial activity during September, with the latter posting its weakest performance for around two-and-a-half years.

“While temporary factors such as the Olympics and an extra working day relative to Q2 somewhat cloud the interpretation of Q3 UK GDP, the principal take out from September’s PMI survey is that underlying construction weakness is likely to continue for the remainder of 2012.”

Latest news

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
20 hours ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
17 hours ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
20 hours ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
20 hours ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
20 hours ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
20 hours ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
2 days ago

Worker rescued from collapsed four metre deep trench

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

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
3 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
2 days ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
2 days ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
2 days 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
2 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
2 days ago

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

Consultation starts on London 60 Gracechurch Street tower
3 days ago

Severfield ends year on high with record order book

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

Second senior director exits National Highways

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

New scheme fuels London lab building boom

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

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

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

£55m Sheffield build-to-rent scheme approved

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

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
4 days ago

Gas supplier Regent to buy TClarke for £90m

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

Steel contractor Billington launches into bridge market

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

McGee employees benefit from rise in profits

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

Lendlease veteran is latest new McAlpine director

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

Costain signs site labour supply deal with four firms

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

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

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

VolkerFitzpatrick wins £30m logistics job

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

Trio win new Scape utilities consultancy framework

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

Precast firm FP McCann cleared after immigration raid

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

Contractor services