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September 3, 2013

UK construction sector surges in August 2013: Markit/CIPS report

Construction sector in the UK has increased at its fastest rate for six years in August 2013 and for the fourth consecutive month, according to the new Markit/CIPS survey.

By admin-demo

The construction sector in the UK has increased at its fastest rate for six years in August 2013, and for the fourth consecutive month, according to the new Markit/CIPS survey.

The Chartered Institute of Purchasing & Supply/Markit headline Purchasing Managers’ index reached 59.1 in August 2013, up from 57 in July and above the neutral value of 50.

Construction firms also remain confident about the year ahead with 46% of survey respondents anticipating an increase and only 10% a reduction.

The survey revealed that among three areas of activity, residential construction remained the strongest performer, with output increasing at its fastest pace since June 2010.

A sharp growth was also seen in civil engineering activity since September 2007 and commercial construction growth was at the highest level since May 2012.

Markit senior economist and author of the report Tim Moore said the latest Construction PMI figures are yet another indication that the UK economy has performed better over the summer months.

"A steep upturn in civil engineering activity suggested that public sector demand has joined residential building as a key driver of construction output growth during August," Moore said.

"With overall output levels now rising at the fastest pace for around six years, it seems highly likely that the construction sector will provide another positive contribution to UK GDP in the third quarter of 2013."

CIPS chief executive officer David Noble said, "Robust expansion can be seen in all three sub-sectors; house building is rising at a rate not seen since mid-2010, commercial growth is also strong, but it is the strongest growth in six years recorded in civil engineering that is a real cause for optimism and a sure sign the sector has overcome its previous difficulties."

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