Construction enters 2014 with ‘wind in its sails’

Aaron Morby 8 years ago
Share

Construction started the New Year in buoyant mood with nearly six out of 10 firms expecting workloads to rise.

According to the latest Markit/CIPS UK Construction Purchasing Managers’ Index confidence has improved as commercial work bounced back strongly recording the fastest growth in activity since April 2007.

Residential work remained the fastest growing area of construction, although this was also the only area to post a slower pace of expansion than in November.

Civil engineering activity increased at the same pace as that reported in the previous month.

Construction firms said improving business conditions and greater confidence in the economic outlook had boosted spending among clients during December.

At 62.1 in December, from 62.6 in the previous month, the index was well above the 50.0 value that separates expansion from contraction.

Higher levels of incoming new work have been now recorded in each of the past eight months.

Although the rate of new order growth eased since November, the latest expansion was one of the steepest seen since late-2007.

CIPS December

This has boosted confidence about the outlook for business activity during the year ahead.

Of those companies surveyed 57% expected output to increase in the year ahead, compared to just under a third at the start of 2013.

Tim Moore, Senior Economist at Markit said: “The latest survey highlights that construction companies enter 2014 with the wind in their sails.

“Most encouragingly, the improving UK economic outlook is helping boost private sector spending patterns, meaning that the construction recovery has started to broaden out from housing demand and infrastructure projects to include strong growth in commercial building work.

He added: “Stronger growth expectations and fuller order books are continuing to fuel job creation in the construction sector.

“Higher employment numbers have now been reported for seven successive months, and these efforts to meet a sudden turnaround in UK construction demand should help keep staffing levels moving strongly upwards into 2014.”

David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply, said: “It is pleasing to see the growth in the sector leading to such significant hiring of staff.

“As construction reported its strongest quarterly performance since Q3 2007 and as levels of new orders continue to rise, job creation is ramping up and has now been increasing for seven consecutive months. This is a good sign that activity will remain strong in the months ahead.

“The natural consequences of the rapid jump in construction activity during 2013 have been the continued squeeze on stocks at supplier level and the lengthening of delivery times. These pressures, alongside increasing business costs, will remain in 2014, but with hopes that they won’t prolong.”

Latest news

Race starts for £500m Scottish zero carbon hospital job

Bidding starts for new University Hospital Monklands near Airdrie
50 mins ago

Manchester airport taxis out £60m terminal 2 pier job

Bidding to start before the end of 2022 for project start early next summer
51 mins ago

Plan for 1,100-home complex at Leicester factory site

Galliford Try investments plots Corah Factory transformation
2 hours ago

Axed House by Urban Splash staff plan legal action

Ex-workers consult with lawyers following administration
2 hours ago

Summer slowdown fears as latest contract award data droops

Latest Barbour ABI Snap Analysis paints uncertain picture
1 hour ago

Farrans wins £39m Somerset recycling hub

Site preparation gets underway for Keynsham Recycling Hub
2 hours ago

Balfour gets green light for £250m M25 junction 10

Autumn start for M25 junction 10/A3 Wisley interchange improvement scheme
3 days ago

Leeds plumbing contractor sinks with loss of 30 jobs

Dickinsons Plumbing and Heating goes down but renewables arm salvaged in sale
3 days ago

HS2 achieves first diesel-free construction site

Skanska Costain STRABAG JV runs Kilburn site with green kit
3 days ago

Administration confirmed at House by Urban Splash

160 jobs lost following "operational issues" at modular factory
4 days ago

Network Rail fined £1.4m after worker crushed by track machines

Judge highlights "many layers of failure" within site management
4 days ago

Kier picked for £350m Leatherhead regen plan

Property arm to draw up plans to redevelop two large town centre sites
4 days ago

Two seriously injured in London steelwork collapse

Two steel erectors left fighting for their lives after collapse at Ardmore site
4 days ago

Urban Splash modular staff start looking for new jobs

Work stops at House by Urban Splash factory and housing sites
4 days ago

Building facade specialist CMS goes into administration

Building envelope firm had turnover of £43m
5 days ago

Office work uplift returns construction output to growth

New commercial work drives output uplift for the first time since the pandemic
4 days ago

More suppliers wanted on £683m waste power plant

Meet the buyer event for North London Heat and Power Project: Register now
5 days ago

Vistry Partnerships lands £128m London flats deal

Legal & General signs up firm for 480-flats over five buildings in Wandsworth
5 days ago

HS2 Project Bank Accounts “not worth paper they are written on”

Subcontractors furious after payment protection promises evaporate in wake of Roadbridge collapse
5 days ago

Taylor Wimpey to tear down half-built £48m Hackney Wick scheme

Concrete frame to be demolished after discovery of "potential structural issue"
5 days ago

Data centre work lifts TClarke orders to record high

Orders hit £585m, more than £100m on last year
5 days ago

BAM lands largest ever fit-out job

Firm to fit-out landmark 12-storey Edinburgh St James Quarter 'ribbon' hotel
6 days ago

Winners revealed for £1.1bn demolition framework

Pagabo confirms 29 firms on new deal: Full list
6 days ago

Spie boss joins United Living as new MD of infrastructure

United Living rebrands Fastflow Energy and Pipelines businesses
6 days ago

Vinci/McAlpine JV wins £90m rehab hospital

Main contract award for National Rehabilitation Centre
6 days ago

Phoenix ME forecast revenue to rebound by 20%

London M&E specialists expects to return to around £200m revenue this year after set back last year
5 days ago

Roadbridge UK went down owing £60m

Supply chain owed £22.5m with little chance of any return
6 days ago

Bid race for tunnels on £150m Tube station upgrade

Bidders day on 27 May for Elephant and Castle capacity upgrade tunnels
7 days ago

ISG joins structural steel re-use project

Project aims to cost out business model for whole value chain from client to demolition contractor
6 days ago

Major hotel plan for Birmingham Central Methodist Hall

Three-storey rooftop extension will form part of historic hall restoration
6 days ago

Contractor services