Civils work fuels sharp rise in construction output

Date: 03 May 2017

Construction buyers have reported the biggest monthly output rise of the year so far fuelled by growth in civil engineering and residential work.

The latest Markit/CIPS UK Construction Purchasing Managers’ Index rose to 53.1 in April from 52.2 in March.

Civil engineering work enjoyed its sharpest increase sine March 2016 while the acceleration of residential jobs also reached a four-month high.

The number of new jobs created also hit its strongest level since May 2016.

Tim Moore, Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI said: “April ’s survey reveals a positive start to the second quarter of  2017, with a robust upturn in civil engineering activity helping to boost the construction industry .

“There were also more encouraging signs from the house building sector, as growth recovered to its   strongest so far this year.

“However, the performance of the commercial building sector remained subdued in the context of the past four years .

“ UK construction companies noted that the resilient economic backdrop helped to drive up client spending in April .

“Greater workloads led to the fastest pace of job creation since May 2016 and a continued squeeze on subcontractor availability .

“ Supply chain pressures also intensified, as highlighted by the largest lengthening of delivery times for almost two years.

“A sharp rate of input cost inflation persisted in April, reflecting an ongoing pass through of higher commodity prices , imported goods and energy costs .

“However, the recent recovery in sterling may have started to help limit some cost pressures in April, as the overall rate of input price inflation moderated to a six-month low. ”


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