Positive Signs of a Recovery

Positive news for construction industry growth.
The construction industry has seen its fifth consecutive month of growth, according to the latest CIPS/Markit survey.
September saw the sector continue to go from strength to strength, with the report suggesting strong expansion of overall output levels, as well as further improvement in their new order books.
Despite growth seeing a slight dip during September, down from the 59.1 reported in August to 58.9, it was still above the 50 threshold that defines expansion in the industry.
Once again, it was residential construction leading the way, marking the sharpest rise in housing developments since November 2003. It seems this particular area is continuing to benefit from government schemes such as Help-to-Buy and funding for lending.
However, all three sub-sectors of construction grew last month – commercial, residential and public sector – causing Markit economist Tim Moore to say that the construction sector is “no longer the weakest link in the UK economy”.
“The third quarter of 2013 ended with output growth riding high amid greater spending on infrastructure projects and resurgent house building activity,” he added.
Furthermore, the industry experienced increased order books, helping to provide a boost to employment figures. The report revealed that the creation of construction jobs is at its fastest for almost six years.
“Moreover, builders are confident that a tide of new tender opportunities will continue to lift the construction sector in the months ahead, supported by improved development funding conditions and better underlying economic conditions,” Mr Moore continued.
“September’s survey suggested that constructors are beginning to react with confidence to the more positive landscape for the sector, as job creation and input buying both rose at robust rates over the month.”
Construction optimism has also increased among businesses, with 51 per cent expecting a rise in output in the coming 12 months. A fall in output was predicted by just under ten per cent.
We all hope for this trend to continue into 2014 and beyond.