Construction enters 2014 with ‘wind in its sails’

Aaron Morby 7 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

Green light for £1bn London hotel

Kensington Forum scheme is huge vote of confidence in capital's hospitality sector
20 hours ago

Pothole repair robot unveiled in Liverpool

University team hope AI technology will revolutionise road maintenance
16 hours ago

Lone Star offer to buy McCarthy & Stone for £630m

Private equity investor swoops with recommended cash offer to buy retirement homes specialist
23 hours ago

Legal & General signs construction deal with nine contractors

Southern construction partners chosen by Inspired Villages - more regions now up for grabs
23 hours ago

Priti Patel snubs plea to ease controls on foreign brickies

Some big brickwork contractors warn four in five workers are EU nationals
23 hours ago

Plans in for Poole quay housing and hotel scheme

Fisherman's Dock plan for 228 flats and boutique hotel
24 hours ago

McAleer & Rushe bounces back with £350m haul of orders

Spate of wins restores two-year order book to near pre-Covid levels
23 hours ago

Graham signs off £161m Aberdeen hospital deal

Work to start next month of Baird Family Hospital and ANCHOR cancer centre
23 hours ago

ISG starts new £50m Royal Marsden cancer centre

Oak Cancer Centre due for completion in Summer 2022
2 days ago

Vital Energi lands £6.58m energy centre deal

Specialist to build Combined Heat & Power centre on Galliford Try site
2 days ago
Vital Energi

Causeway Donseed offers non-contact site monitoring

Facial recognition makes access control Covid safe
2 days ago

Osborne wins prelims for £1.7bn Stonehenge route

Record £35m archaeological protection and excavation deal also signed
2 days ago

Industry door and window supplier collapses

North West's Total Glass falls into administration
2 days ago

Hill Group launches £300m London land grab

Land buying drive to boost housing pipeline in the capital
2 days ago

Mace £500m Stevenage town centre revamp approved

Mace says town centre plan is a blueprint for Government build back better ambitions
3 days ago

McAleer & Rushe wins Brixton archive and homes job

Final phase of Muse's Lambeth Town Hall scheme gets underway
2 days ago

Alumasc and Travis Perkins see sales continue to rise

Post lockdown demand continues but commercial construction lagging other sectors
2 days ago

Big name winners confirmed for CITB management training cash

Major contractors get £2.8m towards in-house training for senior staff
3 days ago

B&K starts £70m MediaCity resi scheme

14 and 17 storey blocks will contain 280 flats for sale
3 days ago

Civils outfit Bemus heads for liquidation owing £4.6m

Founder Sean Walsh applies for creditors voluntary liquidation
3 days ago

UWE Bristol to tender 900-bed student digs

Trio of six-storey blocks to be built at Frenchay Campus.
3 days ago

Amey trials pothole repair material made from old tyres

Unique rubber-modified material may be coming to Sheffield’s roads
3 days ago

HS2 reveals low-slung viaduct designs

Northamptonshire Edgcote and Lower Thorpe viaducts designed to be unobtrusive
4 days ago

Van Elle wins HS2 ground improvement deal

Firm will vibro pile 4,000 stone columns in north west London
4 days ago

Skanska wins Bristol Temple Street office job

Work to start next month on One Portwall Square project
4 days ago

Three sisters set-up plant hire business

Finnegan sisters buy first kit after securing funding deal
3 days ago

Network Rail SME spend tops £2.5bn for first time

Small and medium-sized firms account for 36% of total rail spend
4 days ago

Construction fears force immediate evacuation of London estate

Inspections raise serious concerns about Berkeley-built modular housing and student blocks
5 days ago

Bellway recladding costs overshadow hit from Covid

Pre-tax profit slumps 62% after £47m set aside for recladding and extra Covid costs
4 days ago

Workers stunned by construction pay freeze plan

Union slams "missed opportunity" to reward workers who have continued throughout pandemic
5 days ago

Contractor services