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News Release from: PKF Accountants & Business Advisers | Subject: PKF SME Index
Edited by the Buildingtalk Editorial
Team on 27 April 2006
Public sector demand keeps sector busy
Public Sector year end spending lifts first quarter for SME construction sector.
The release of public sector funds prior to the year end created a busy first quarter for the SME construction sector, according to the 'PKF SME Index', a quarterly survey of 800 SMEs operating in the manufacturing, construction and service sectors Output in Q1 2006 continued to expand at 54.7 (where marks above 50 indicate expansion and marks below 50 indicate contraction) while new business orders rose from 51.8 in Q4 2006 to 54.8
This article was originally published on Buildingtalk on 19 Jul 2007 at 8.00am (UK)
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SME construction sector continued to outperform both other SME sectors and UK private companies as a whole during the third quarter, according to the PKF SME Index.
The main reasons cited by construction companies included the release of government funds for hospital building projects, an increase in the number of tender opportunities from NHS clients, and a higher level of overseas enquiries and export orders.
On the downside, some respondents commented on the dearth of office fit-out projects and some delays on commercial sector orders.
While employment levels for all sectors continue to be flat at 50.7, the construction sector reported the strongest rate of job creation at 55.3, up from 54.5 at the end of last year.
Input cost inflation continued to rise steeply - up to 67.4 from 66.5 in Q4 2005.
Respondents report significant increases in major materials, shortages in suppliers' stock and the continuing hikes in energy prices.
Commenting on the findings of the PKF SME Index, Toby Stephenson, PKF partner for growing business, said: "The year has started well for the construction sector".
"Although the rush to spend budgets by the year end has been the driving force behind new public sector projects, there is plenty of evidence to suggest that construction companies are enjoying buoyant workloads and an encouraging level of enquiries from other sources".
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