The construction industry is enjoying a buoyant growth in the housebuilding sector.
Data by Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) reports a rise to 59.9 in September from 57.3 in August, displaying the fastest increase in output levels since February.
Figures from the Office of National Statistics also showed that output improved in all three sectors –commercial, civil engineering and housebuilding. Although housebuilding remained the best performing category as it accelerated at the fastest pace in seven months.
Markit commented that this was reflected with a boost in employment in the sector, and job creation hit a three-month high in September.
Tim Moore, Senior Economist at Markit, said new development projects which had been delayed could be responsible for September’s housing boom.
He said: “September’s data suggests that the UK construction sector is still experiencing its most intense cycle of job hiring for at least 15 years, and consequently skill shortages remain a dominant concern across the industry.”
Despite the increase in construction output, jobs and supply-chain, new business growth has eased since June’s peak with construction companies experiencing a slowdown in new orders, Markit reported.
David Noble, Chief Executive at CIPS, added: “The building blocks were firmly in place as the sector reported more work, rising staff levels, and strong optimism for the future.
“Though the overall growth rate of new business was showing signs of slowing down, all three sectors offered positive news with residential housing the strongest performer.”
The construction sector makes up 6% of the British economy.
David Lewis, Managing Director of Integra People, said: “We are pleased to hear the construction industry is making a good recovery and the housebuilding sector is on the rise.
“The industry is experiencing a good boost in all areas such as an increase in wages and a high demand for bricklayers, joiners and site managers – which is great news for our contractors.”
Posted on Thursday, November 5, 2015