SME construction sector experiences strong quarter

Business activity growth is strongest for three-and-a-half years according to the PKF SME Index.

SME construction companies had a very successful second quarter achieving levels of growth not seen for three-and-a-half years, according to the PKF SME Index, a quarterly survey of 1,000 SMEs operating in the manufacturing, construction and service sectors.

Business activity jumped from an already strong position in Q1 of 60.2 to an even stronger 60.9 in Q2 (marks above 50 indicate expansion and below 50 indicate contraction).

This marked the highest growth for three-and-a-half years.

New orders were also robust and construction companies recorded the highest levels of growth - at 57.2 - for new business out of all three of the survey sectors.

Respondents said the granting of planning permission was ! a big factor towards the growth in activity and a general increase in commercial activity was said to explain the growth in new business gained within the quarter.

The increase in business activity also led to an intake of new staff.

Construction companies again experienced the highest growth of the three sectors with a figure of 55.4 in Q2.

This compared to 54.4 in Q1 and the Q2 figure was the strongest rise seen for two years.

Commenting on the findings of the PKF SME Index, Stuart Barnsdall, PKF partner for growing business, said: "The construction sector has had a particularly strong quarter and the figures of growth are encouraging.

"As with manufacturing, input prices are still on the rise as a result of the ever increasing costs of raw materials and it would be expected that the ongoing interest rate rises will hopefully tame these costs over the next year or two.".

Back to top