Tuesday, 10 June 2014

Construction sector is now experiencing its longest period of job creation for six years

The latest Markit/CIPS UK Construction Purchasing Managers' Index (PMI) has revealed that the construction sector is in its longest period of job creation for six years. It also showed another steep increase in demand for construction materials, with input buying rising at the fastest pace for three months - building and construction products manufacturers and suppliers should be highly encouraged, but also concerned that their lead times continue to lengthen. 

The industry is in its thirteenth consecutive month of expansion, although at a slower rate than April, the index, which measures building activity was rated at 60 in May from 60.8, mainly reflecting slowing growth in commercial space such as offices, shops and warehouses. However, it was still well above the 50 mark which separates expansion from contraction.

House building remained the strongest performing area of activity, while civil engineering output increased at a robust rate that was faster than in April. 

As mentioned supplier lead times lengthened in May, with survey respondents widely noting shortages of stock and supply-chain bottlenecks. 

Tim Moore, senior economist at Markit and author of the Markit/CIPS Construction PMI, said: 

"Output growth hit a seven-month low in May, but the UK construction sector is enjoying its strongest overall phase of expansion since the summer of 2007. Residential building remains a key engine of growth, with survey respondents citing another surge in new house building starts during May. 

"The latest survey highlights that the construction sector is now experiencing its longest period of job creation for six years. Strengthening demand for construction staff arrived amidst the fastest drop in sub-contractor availability since August 1997, which in turn contributed to a survey-record rise in sub-contractor charges in May. 

"UK construction output is still around 10% lower than its pre-crisis peak, but there were further indications of capacity strains in May as companies reported sharply lengthening delivery times for raw materials as well as the steepest drop in the availability of sub-contractors for almost 17 years." 

For UK Construction Sales Job and Recruitment contact Pinnacle Consulting on 01480 405225.

Image thanks to "Metal Structure Of House Roof In Home Construction Site And Sun" by khunaspix http://www.freedigitalphotos.net

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