PMI reports UK construction growth in November but costs rising

  • 5 Dec 2016

howardchapmanHoward Chapman, Buildingtalk Editor, looks at the latest construction PMI report of a return to growth in the UK Construction industry.

According to the latest Markit/CIPS UK Construction Purchasing Managers’ Index (PMI), the UK construction industry reached a better than expected eight-month high in November. However, costs are growing at the fastest pace since 2011, fuelled by the post Brexit vote drop in sterling.

Companies also reported the resumption of some major projects delayed after the Brexit vote and construction jobs growth hit a six-month high. There are concerns about the build-up of inflationary pressures, uncertainties over the long term impact of Brexit, and problems created by the skills shortage in the UK.

Bloomberg reported that though construction activity in the UK grew, companies warned that rising costs are squeezing their profit margins.

PMI index rise

The PMI index rise last month was underpinned by increased commercial and civil engineering work as well as growth in house building. Tim Moore, a senior economist at Markit said “UK construction companies experienced a steady recovery in business activity during November, which continues the rebound from the downturn seen over the third quarter of 2016”.

 

 

 

Leave a Reply

Latest news

GAI
Keystone Lintels

Keystone Brick Slip Feature Lintels integral to Cheshire barn development

Keystone Lintels provides a range of innovative, prefabricated brickwork solutions as part of the restoration and conversion of a series of barns into new homes along with the creation of nine new build houses.

Posted in Articles, Bricks & Blocks, Building Industry News, Building Products & Structures, Building Systems, Case Studies, Posts, Restoration & Refurbishment, Retrofit & Renovation, Steel and Structural Frames, Walls

Lathams

Lathams broadens offer with Irish addition

James Latham Ltd expands its Irish service offer following the opening of a bulk timber distribution business just outside Dublin.

Posted in Articles, Building Industry News, Building Products & Structures, Building Services, Building Systems, Innovations & New Products, Interiors, Restoration & Refurbishment, Retrofit & Renovation, Timber Buildings and Timber Products, Wooden products

Hambleside Danelaw

Hambleside Danelaw personnel announcement as Southgate joins

Gary Southgate joins Hambleside Danelaw as Business Development and Specification Manager for Zenon Rooflights.

Posted in Articles, Building Industry News, Building Products & Structures, Lighting, Recruitment, Roofs