While civil engineering output decreased at the end of 2014, house building and commercial construction have continued to perform strongly.
Over half of survey respondents expected the UK’s construction sector to grow this year, with house building expected to be one of the biggest drivers of growth.
Tim Moore, senior economist of Markit, commented: Over the course of 2014, UK construction firms recorded the strongest calendar year of residential building since the survey began in 1997.
While Moore recognised the optimism in the industry, he also warned that there were still issues surrounding supply chain and skill shortages.
The survey conducted by Markit also highlighted the rapid increase in subcontractor pay due to the skills shortage in the industry – the second biggest pay increase since the survey first began in 1997.
However falling oil prices have helped to offset this inflation for construction companies with many looking to reap the benefits of cheaper fuel.
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