Housing drives construction activity recovery in April

Aaron Morby 7 years ago
Share

Construction buyers saw a modest recovery in construction output following the weather-related disruptions seen during March.

Increase in new business was the first recorded by the survey so far this year
Increase in new business was the first recorded by the survey so far this year

House building experienced robust growth in April while underlying demand across the construction sector remained subdued, with total new work rising only marginally last month.

The increase in new business was the first recorded by the survey so far in 2018.

At 52.5 in April, the seasonally adjusted IHS Markit/CIPS UK Construction Purchasing Managers’ Index® picked up sharply from the 20-month low seen in March (47.0).

Latest survey data indicated that construction firms are relatively upbeat about the 12-month business outlook, with the degree of confidence the strongest recorded since last May.

Tim Moore, author of the IHS Markit/CIPS index, said: “A rebound in construction activity was pretty well inevitable after snowfall resulted in severe disruptions on site during March.

“House building led the way, with growth in April among the strongest seen over the past two-and-a-half years.”

He added that the picture was less positive in other areas of construction, with commercial building and civil engineering work rising only marginally.

“Survey respondents noted that heightened economic uncertainty continued to hold back construction growth in April, with risk aversion among clients leading to delays with spending decisions on new projects.”

“A consistent theme so far this year has been fragile demand conditions and subdued volumes of incoming new work,” he added.

Duncan Brock, group director at the Chartered Institute of Procurement & Supply, said: “April’s data provides some relief after last month’s weather disruption, especially for the housing sector after a lacklustre few months.

“However, economic uncertainty and Brexit-related indecision continue to lurk beneath the surface as obstacles to the construction sector’s stability.

“There were some positives reported by construction firms in April as optimism rose to its highest level since May 2017 and an increase in workforces was reported in anticipation of a better second quarter of the year.

“What the sector needs now is more widespread client confidence and big ticket projects to follow suit.”

Latest news

Major Building Safety Regulator shake-up to end tower delays

HSE stripped of control and top fire chiefs brought in to fast-track stalled schemes
14 hours ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
7 hours ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
8 hours ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
11 hours ago

Hinkley trio sign Sizewell civils deal

Balfour,Bouygues and Laing O'Rourke form Civil Works Alliance for new power station
14 hours ago

£3.9bn data centre plan for Ravenscraig steelworks

Green energy to power massive new steel to silicon AI campus
15 hours ago

Breakthrough on HS2’s second longest tunnel

8.4 mile Northolt to Old Oak Common drive completes
15 hours ago

Neilcott on fast-track to debt-free employee ownership

£22.5m loan nearly paid down after big profit year
13 hours ago

TfL kicks off race for £700m Tube station upgrade

South Kensington and Elephant & Castle top the pipeline list
15 hours ago

Corbyn Plant Hire fleet goes under the hammer

Kit to be sold off by sister firm to collapsed groundworks contractor
14 hours ago

Government wields procurement stick on late payment

New rules would block slow payers from bidding on big public jobs
4 days ago

Hercules buys power line labour firm for £15.7m

Labour supply specialist snaps up Advantage NRG to tap booming electricity upgrade market
4 days ago

Universal bid to fast-track planning for theme park

Entertainment giant eyes 2026 start at Bedford site
4 days ago

Developer Breck to transform former Ibstock brick factory

Ravenhead works to become 300-home development
4 days ago

SP Energy Networks awards contracts worth £1.4bn

First round of awards under £5.4bn national electricity grid upgrade programme
4 days ago

Travelodge to convert Liverpool Street office building

Office-to-hotel conversion in City of London
4 days ago

Plans lodged for 1m sq ft City of London office

Barbican landmark building will reuse 40% of existing structure
4 days ago

PTSG acquires roofing specialist HD Sharman Group

Premier Technical Services Group expands building maintenance division
4 days ago

Balfour Beatty lands £833m carbon capture power plant job

Work to start later this year on Teesside carbon capture gas-fired power station
5 days ago

Svella agrees deal to save Cubby Construction

Solvent purchase set to save 214 jobs and protect supply chain
5 days ago

J Coffey holds line on margins despite £52m revenue slide

Pre-tax profit down 14% but firm eyes strong pipeline to bounce back
5 days ago

Consultants called up for £2.3bn NHS SBS panel reboot

Market asked for views ahead of next-gen procurement rollout
5 days ago

Hochtief launches new UK data centre division

German business model to be introduced for UK construction
5 days ago

Construction skills body launches with 100,000 worker target

Industry to work closer with Jobcentres to find new talent
5 days ago

Kier lands £42m Midlothian school and community hub

Contractor strengthens presence in Scotland with big education job
5 days ago

BESA audit blitz sees 14 specialist contractors suspended

Building engineering services trade body cracks down on standards
6 days ago

Engineers pull-off 220m HS2 viaduct slide in 3 days

Five-structure Northants sequence ends with 1,300t deck slide - video
6 days ago

Managing Director moves to advisory role at Shufflebottom

Alex Shufflebottom steps-down after acquisition by Embrace
6 days ago

JV North unveils winners of £500m housing blitz

Consortium gears up to deliver 3,000 new homes across North West
6 days ago

Partnerships builder Keepmoat names new chief executive

Ian Hoad to take reins as Tim Beale steps down after eight years
6 days ago