The construction sector, which makes up about 6 per cent of the UK economy, was hit hard by the recession and is still not back to its pre-downturn size.
Britain’s construction sector has eased off slightly, with growth slowing to its lowest levels since the end of 2013. A closely-watched gauge of the sector dipped slightly in November, from 61.4 to 59.4 but it was still above the 50-mark that indicates expansion.
The Purchasing Managers' Index (PMI), compiled by Markit and the Chartered Institute of Procurement & Supply (CIPS), has given a reading above 50 for 19 consecutive months.
The slowdown was felt in all three main areas of construction with civil engineering hit hardest: it grew at the slowest pace since July 2013. House building was the strongest area but activity there also grew its softest pace for more than a year.
Commercial construction growth also fell to a 13-month low. According to Markit, “a less favourable overall economic newsflow was cited as the key factor, dampening otherwise buoyant demand patterns across the UK construction sector.” The construction sector, which makes up about 6 per cent of the UK economy, was hit hard by the recession and is still not back to its pre-downturn size. Now that business is growing again, many builders say they are struggling to keep up.
The PMI report said: “Survey respondents generally commented on strengthening demand for construction materials and pressures on capacity at suppliers. Latest data also pointed to a steep lengthening of vendor delivery times, although the rate of deterioration was the least marked since June 2013.”
Overall, the pace of growth for employment in the construction industry picked up slightly from October and was close to a survey-record high that was seen last July.
