UK construction growth strongest in seven months

Latest News Tue, Mar 22, 2016 5:38 PM

UK construction growth strongest in seven months

Construction output in Britain grew at its fastest pace in seven months in August, boosting job creation but also putting strain on suppliers, new industry data shows.

The monthly Markit/CIPS purchasing managers' index (PMI) for construction climbed to 64.0 in August from 62.4 in July, exceeding all the forecasts in a Reuters poll of economists.

Output grew in each of the housing, commercial and civil engineering markets, Markit said.

British construction companies took a beating from the financial crisis and only began to grow strongly last year, helped by the economic recovery, low interest rates and programmes designed to boost demand for homes.

But construction of new homes remains below levels needed to meet demand and the Bank of England has said that risks from the housing market pose the biggest domestic threat to the country's economic recovery.

"A broad-based upturn in construction demand has created a boom in job creation this summer, as construction companies look to replace capacity lost in the aftermath of the recession," said survey author Tim Moore.

Respondents cited Britain's strong economic recovery as one reason new work continued to come in. More than half of companies said they expected a rise in business activity over the forthcoming year.

The steep increase in employment has left the supply chain feeling the strain. Sub-contractor availability dropped at record pace and their charging rates grew at the fastest pace to date.

Supplier performance also suffered, leading to the slowest delivery times from vendors since the survey began in 1997.

Featured News

Specification news
Why choose brushed wood flooring for your home?

Brushed wood flooring is becoming a defining feature in modern homes, combining...

Read More >>

Specification news
CIBSE and Heat Pump Association UK launch new Domestic...

CIBSE has launched its new Domestic Heat Pump Design and Installation Guide,...

Read More >>

BUILDING PRODUCT LIBRARY - LATEST BROCHURES

Scandinavian Furniture Thoughtfully Made  Brochure

Scandinavian Furnitu...
By BJELIN

Download Now >>

Fire Rated Loft Ladders  Brochure

Fire Rated Loft Ladd...
By Premier Loft Ladders...

Download Now >>

Flooring Collection 2026 Brochure

Flooring Collection...
By Gerflor

Download Now >>

Housing Brochure Brochure

Housing Brochure
By Gerflor

Download Now >>

CSR Report 2025 Brochure

CSR Report 2025
By Gerflor

Download Now >>

BUILDING PRODUCT DIRECTORY - LATEST PRODUCTS

Safeshield XT Reflect
Safeshield XT Reflect

Safeshield XT Reflect is an A2-s1, d0 fire rated construction membrane for the use in high risk,...

Read More >>

Safeshield INT Reflect AVCL
Safeshield INT Reflect AVCL

Safeshield INT Reflect AVCL is a high-performance air and vapour control layer that boasts class...

Read More >>

Envirotect Class B-s1,d0 Fire Walling Membrane
Envirotect Class B-s1,d0 Fire Walling Membrane

Permavent Envirotect Class B Fire Walling Membrane is a class B-s1,d0 fire rated membrane for use in...

Read More >>

CONSTRUCTION VIDEOS - LATEST VIDEOS

Fortitude™ Steel Railing Systems: Adjustable Off-the-Shelf Balustrade Guide
Fortitude™ Steel Railing Systems: Adjustable Off-the-Shelf Balustrade Guide

Fortitude Steel Railings and Balustrades are one of the most versatile, off-the-shelf, steel...

Watch Now >>

Pro-Railing® Stainless Steel Handrail Systems: 6 Modern Balustrade & Glass Railing Solutions
Pro-Railing® Stainless Steel Handrail Systems: 6 Modern Balustrade & Glass Railing Solutions

Pro-Railing® – our Stainless Steel Handrail Component System with six stunning ranges to choose...

Watch Now >>

Why Professionals Choose Outdure QwickBuild | Aluminium Deck Frame Case Study
Why Professionals Choose Outdure QwickBuild | Aluminium Deck Frame Case Study

This case study explores a stunning designer terrace featuring the Outdure QwickBuild system,...

Watch Now >>