Construction output growth hits six-year high

Grant Prior 8 years ago
Share

Construction buyers have reported the fastest rise in output since September 2007.

The latest Markit/CIPS UK Construction Purchasing Managers’ Index recorded its sixth monthly rise on the trot last month.

The index jumped to 59.4 in October from 58.9 in September – where any figure above 50 signals growth.

Residential construction remained the strongest performing sector while civil engineering and commercial work recorded robust growth.

Job creation also accelerated at its fastest rate for six year.

David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply, said: “The future is looking bright for the UK construction industry as it soars into the final quarter with its strongest performance in over six years, boosted by a strengthening surge in activity broadening out across all sectors.

“Housing remains the key driver of the ever-strengthening rebound in October, but with civil engineering and commercial works continuing to bolster their expansion. Particularly impressive is the commercial sector, which registered the fastest rate of growth since April 2012.

“The on-going growth of new business levels, climbing confidence and positive market conditions has resulted in the steepest rise in staffing levels for six years.

“Caution on employment experienced in the first half of 2013 has now been replaced by rising expectations and a strong belief that growth can be sustained in the year to come.

“With demand picking up, delivery times are lengthening but there is optimism this will lead to a more bullish approach from suppliers, who up until now have been cautious on stock levels.

“They now have the platform to level out the continuing squeeze on stock availability and operating capacity.”

Tim Moore, Senior Economist at Markit and author of the Markit/CIPS Construction PMI, said: “UK construction output continues to rise like a phoenix from the ashes, with housing, commercial and civil engineering activity all seeing strong rates of expansion at the start of the fourth quarter.

“Official data showed that the construction sector lived up to the strong billing given by business survey evidence during the third quarter of 2013.

“Importantly, the latest Construction PMI survey signals that job hiring and input buying are now rising in tandem with greater new business inflows.

“Improved opportunities to tender and a broadening of the recovery beyond housing activity have helped foster confidence in the longer-term outlook for business conditions.

“Highlighting this, the latest survey indicated that more than four times as many construction firms expect a rise in output over the year ahead as those that anticipate a fall.”

For the latest construction jobs click here

Latest news

Structural steel price jumps another £50 a tonne

British Steel blames New Year's price hike on continuing high product costs
7 hours ago

Green light for Birmingham Paradise landmark hotel

17-storey hotel will be the 'cornerstone' of Phase 2
6 hours ago

Enabling works start at £400m Manchester First Street

Downing to start main construction in March of three resi buildings rising up to 45 storeys
7 hours ago

Former BAM Nuttall chief to join Murphy

Adrian Savory to start new role as director of Major Projects division next month
6 hours ago

Bouygues set for London Tustin Estate 700-home rebuild

Phased building programme to start towards the end of the year
7 hours ago

Safety horror show on housing site leads to director ban

Court hears contractor ignored multiple prohibition and improvement notices
7 hours ago

JV North calls up local firms for £250m new home works

Framework for home building projects worth up to £2m
7 hours ago

Kier more than halves debts to below £200m

Kier chief reports steady progress in first six months of trading
1 day ago

Barhale boosts funds as it looks to rebuild turnover

Contractor confident as water companies ramp-up spending plans
1 day ago

HS2 labour agency looks to float on AIM

£23m turnover labour supply business looks to raise funds for expansion
1 day ago

Kane scores £29m M&E deal with Willmott Dixon

Off site works to play crucial role in major London estate contract
1 day ago

Graham secures third Audley retirement village

Work starts on Audley Villages site at Scarcroft, West Yorkshire.
1 day ago

Keltbray wins first deal for former nmcn infrastructure arm

Hull waste processing contract for rescued division
2 days ago

50 firms win £750m decarbonisation framework

Fusion21 framework to target 'whole building' works on homes and schools
2 days ago

Balfour Beatty UK construction MD to step down

Tom Edgcumbe to depart after just over a year as MD construction services in England and Wales
2 days ago

Crest Nicholson trebles cladding retrofit provisions to £43m

House builder revises building safety retrofit costs in face of new Government guidance
2 days ago

BAM bags £110m refurb of iconic Covent Garden tower

Landmark Seifert-designed 15-storey Space House to get two extra floors
3 days ago

Winvic to start UK’s largest speculative shed

Ellesmere Port warehouse understood to be worth around £80m
2 days ago

Kier signs deal for £169m Luton hospital revamp

Main construction work to start this month and last until 2024
2 days ago

Willmott Dixon nabs £30m Kirklees police HQ

Work to start within next few weeks on regional police HQ
3 days ago

Kier reported to be in talks to buy Tilbury Douglas

Talks reported to be at an advanced stage between both boards
3 days ago

Finance sealed for next-generation London office job

Goldman Sachs takes stake in London Bridge office project
3 days ago

John F Hunt starts giant clean-up on £110m Walsall site

Land remediation work at contaminated site will take two years
3 days ago

Build to rent boom lifts Watkin Jones profit to £52m

Surging build to rent market lifts development pipeline to £1.8 billion
3 days ago

HS2 awards £310m station lifts and escalators deal

TK Elevator signs 160 lifts and 130 escalators deal for four stations
4 days ago

Robot cutter set to revolutionise paving jobs for Eurovia

Automated system will spell end for noisy slab cutting on busy sites
4 days ago

First mass built carbon negative homes get underway

St Modwen first volume developer to build affordable carbon-negative homes
4 days ago

GMI Construction names new CEO

Lee Powell takes helm as CEO at GMI Construction in growth push
4 days ago

514-home London scheme clears final hurdle

Inland Homes declares victory after three-year planning battle over Hillingdon Master Brewer site
4 days ago

Henry Construction wins £30m Clarion housing scheme

Ravensbury estate regeneration in Mitcham is Henry's first project for Clarion
4 days ago

Contractor services