Construction in strongest growth since 2007

Grant Prior 14 years ago
Share

Construction activity in April grew at its strongest rate since September 2007 as house building and commercial work continue to push the industry towards recovery.

The second successive month of growth was highlighted in the Markit/CIPS Construction Purchasing Managers’ Index survey which also showed civil engineering work contracting at its slowest rate for 23 months.

Hopes of a private-sector led recovery were also voiced by consultant WSP in a Stock Exchange statement today which said: “In the UK we have seen early signs of increased activity in the private sector and we wait to see if this continues.”

The Markit survey revealed that construction employment is still falling as firms recorded their 23rd successive month of job cutting.

The use of subcontractors also fell during April but at the slowest rate since February 2008.

Sarah Ledger, economist at Markit said: “Growth of the UK construction sector was sustained for a second consecutive month in April, with increased activity in both the residential and commercial construction sub-sectors arising from improved new contract wins.

“However, reflective of the impact of the twenty-four month recession in the industry, employment is yet to rise. Nonetheless, optimism over future business prospects continued to improve, despite sustained concerns over potential cuts in government spending.

“This suggests that growth in private business may help to offset any impending weaknesses in public sector demand.”

David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply, said: “It’s encouraging to see the construction sector show signs of recuperation for the second month running and suggests that the whole UK economic recovery has real substance.

“Though the industry is moving in the right direction, we mustn’t be lulled into complacency as growth is coming from a very low base and operating conditions are still very difficult.

“While purchasing managers noted a growing appetite for new contracts – especially in the housing and commercial sub-sectors, civil engineering is still a sore spot with little activity.

“Looking forward during election week, it’s a worry considering what impact post-election spending cuts and rising input-price inflation might have on the sustainability of the sector’s recovery.

“More worrying still – we are yet to turn the corner and see an end to the 23 months of relentless job cuts.”

Latest news

BAM Co-op Live Arena opening delayed yet again

Another gig cancelled last night amid last minute safety concerns
46 seconds ago

National Grid unveils winners for £9bn network upgrade

New 'enterprise model' to deliver infrastructure schemes quicker and cheaper
18 hours ago

Turkish insulation panel maker to build £45m UK factory

Assan Panel to open first UK plant at Freeport East
51 mins ago

Expanding consultant Stantec swoops for Hydrock

Stantec UK business expands by a third as 950 staff join from Bristol-based engineer
17 hours ago

Contractors wanted for £800m highways deal

Bids invited for Eastern Highways Alliance Framework 4
3 mins ago

Galliford Try names group head of infrastructure

David Lowery promoted to Divisional Managing Director – Infrastructure.
1 hour ago

Chigwell Group looks at stock market listing

Essex contractor registers as Public Limited Company
1 day ago

A57 Mottram Bypass clears final legal challenge

Balfour Beatty to get go-ahead to start shortly
1 day ago

100 jobs axed as Geoffrey Osborne confirms administration

Chairman Andrew Osborne calls it a 'sad day' as board loses fight for survival
2 days ago

Midgard set for Notting Hill office tower overhaul

Landmark project edges towards final approval after 10-year planning saga
1 day ago

Cumbrian civils firm clinches £40m Sellafield contract

Civils specialist Stobbarts will support McAlpine on groundworks and concrete
24 hours ago

Designers named for London 2000-bed student rooms job

Bouygues will build £400m London School of Economics student scheme next to Tate Modern
1 day ago

£117m-turnover contractor files administration notice

ARJ Construction lodges court notice
2 days ago

£1bn London Blackfriars tower blocks approved

Trio of buildings rising to 45, 40 and 22 storeys approved by Southwark Council
2 days ago

Council decides to end Balfour deal after 13 years

Contractor has been maintaining roads across Herefordshire since 2013
2 days ago

Six civils clients to switch to low carbon concrete and steel

National Highways, Northumbrian Water and Sellafield sign fresh decarbonising pledge
3 days ago

Fortem extends homes repair deal across Birmingham

Willmott Dixon owned firm adds another two years to deal worth £170m
2 days ago

Kier wins £118m civil service Darlington hub

Work is expected to start towards the end of this year
3 days ago

Green light for 34-storey Digbeth apartments tower

480 flats will be delivered for Clarion housing association
2 days ago

LHC starts race for major retrofit and decarb framework

Hunt starts for firms to help with 6.1m social homes upgrade target
3 days ago

Windows giant Everest crashes into administration

Around 350 jobs at risk while hunt starts for a buyer to salvage business
3 days ago

Green light for £500m Newcastle health complex

Mixed use scheme will promote healthy living across all stages of life
3 days ago

Olympian Homes gets go-ahead for Bristol’s tallest building

Work on student and co-living towers to start this summer
3 days ago

ISG gets nod to start £20m Glamorgan school job

Ysgol y Deri specialist needs school is to built at Cosmeston, near Penarth
3 days ago

Walker Modular lands £5m bathroom pod contract

Specialist to work with Graham and Watkin Jones on major build-to-rent scheme

Banned building boss jailed for fraud

Court hears how disqualified director siphoned off cash from new housing company
3 days ago

Osborne staff start looking for new jobs

"Open to Work" flags appear on LinkedIn profiles
6 days ago

Plan rejected for 42-storey tower above historic building

Councillor describes as ludicrous plan to build 300 flats above Georgian mansion
6 days ago

Ventilation deal could hike product prices for contractors

Watchdogs at CMA launch probe after duct firm acquires rival
6 days ago

Tide gets go-ahead for London 412 student flats scheme

Volumetric developer secures planning for West Ealing project
6 days ago

Contractor services