Construction hits nine-month high in December but costs jump

Latest News Mon, Jan 9, 2017 7:13 AM

Activity in Britain's construction sector expanded at the fastest rate in nine months in December, boosted by more house building, but sterling's weakness drove the biggest rise in costs in over five years.

The Markit/CIPS purchasing managers' index (PMI) rose to 54.2 in December, its strongest since March and well ahead of expectations in a Reuters poll for it to hold steady at November's reading of 52.8.

But the figures also highlight the challenge Britain will face this year from sterling's plunge after the June vote to leave the European Union, which has pushed up business and household costs.

Markit said building costs rose last month at a rate not seen since April 2011, and that companies reported shortages of materials, possibly because of extra demand as they stocked up to beat further price increases.

"UK construction companies noted that the weaker sterling exchange rate had resulted in higher costs for a wide range of imported materials," survey author Tim Moore wrote.

Britain looks to have been one of the strongest-performing advanced economies last year, but most economists predict a slowdown in growth to 1.1 percent this year from double that in 2016 as inflation climbs.

House building accelerated in December, growing at the fastest rate since January, and may get extra momentum if government plans announced on Monday to build 200,000 new rural homes overcome local planning restrictions.

Civil engineering staged its biggest pick-up in growth in nearly two years, Markit said, but demand for commercial projects such as factories and shops remained lacklustre.

This reflected "an ongoing drag from subdued investment spending and heightened economic uncertainty," Moore said.

Featured News

Specification news
Social housing development benefits from Magply...

Off-site timber frame systems are evolving with an increasing market share in the...

Read More >>

Specification news
Class 1 Magply boards withstand real life fire test on...

A potentially catastrophic blaze, which consumed the garage containing a parked...

Read More >>

BUILDING PRODUCT LIBRARY - LATEST BROCHURES

SCHOTT UK Ltd- Certificate of Approval Brochure

SCHOTT UK Ltd- Certi...
By SCHOTT UK Ltd.

Download Now >>

SCHOTT PYRANOVA® for glass floors Brochure

SCHOTT PYRANOVA® for...
By SCHOTT UK Ltd.

Download Now >>

Scott Glass Brochure Brochure

Scott Glass Brochure
By SCHOTT UK Ltd.

Download Now >>

SentryGlas® Interlayer Superior Strength, Lasting Beauty Brochure

SentryGlas® Interlay...
By Firman Glass Ltd

Download Now >>

Toughened Glass Bends Brochure

Toughened Glass Bend...
By Firman Glass Ltd

Download Now >>

BUILDING PRODUCT DIRECTORY - LATEST PRODUCTS

PYRANOVA®
PYRANOVA®

Fire-resistant glass with the EI classification provides additional thermal insulation alongside...

Read More >>

Schott TGS Pyran® S
Schott TGS Pyran® S

For fire resistance and protection of people and propertySchott TGS Pyran® SFire Resistant...

Read More >>

ISO PYRAN® S
ISO PYRAN® S

ISO PYRAN® S incorporates PYRAN® S fire-resistant glass in a double-glazed unit. This offers a...

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 >>