Some workers are on site! They think it's all over! It is now!

After years of hurt, all this means that the UK construction industry is back in growth after six consecutive months of decline, according to a new survey from the Chartered Institute of Purchasing and Supply.  

The improvement has been mainly due to residential house building growing at its fastest pace for 26 months. However, the report also showed supplier performance deteriorated in May - but suppliers should be encouraged that it is down to demand exceeding supply. If this can be resolved, then Pin Board is confident that the growth in the industry will continue to increase in the coming months.

The Markit/CIPS Purchasing Managers’ Index® (PMI®) for the construction sector posted its index at 50.8, up from last month's 49.4, showing a moderate rebound in output levels & new work.

David Noble, CIPS CEO said: "The construction sector seems to have turned a corner after six dismal months. The improvement has been fuelled by a boom in house building, but the sector remains bogged down by contractions in commercial construction and civil engineering. Whilst confidence for the year ahead remains high, the poor performance of suppliers and flat levels of employment will serve as a reality check to construction and the wider UK economy.

"The Government's attempts to boost house building has given months of lacklustre growth a shot in the arm, but the continued decline in civil engineering can be largely attributed to the lack of public sector projects, which show no sign of increasing. This, coupled with poor performance in the commercial sector, means house building alone is driving industry growth.

"Supplier performance in May was the weakest since 2007, reflecting the slow pace of growth filtering through the supply chain, which continues to recover from the recession. This is typified by shortages of capacity, low stocks and worsening lead times which have reduced suppliers' capacity to meet demand as the sector tries to gear up for recovery. This will need to improve, before the sector sees a return to previous levels of output."

All at Pinnacle Consulting, leading recruitment specialists for sales and marketing professionals in the construction and building products sector, hope that the manufacturers and distributors within the industry are able to move quickly and help the recovery. 


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