Construction output hits 6-year high
The future of the UK's construction sector is looking considerably brighter after buyers reported a surge in output.
Figures from the latest
CIPS UK Construction Purchasing Managers' Index showed that growth has now hit a six-year high and is also the sixth consecutive month where the rate has increased. The index showed a rise to 59.4 in October from 58.9 in September, with any figure above 50 is an indicator of growth.
It is a significant boost to the UK's construction sector which has undergone some challenging conditions in recent years thanks to the recession. One of the main drivers of these positive figures was residential construction which was highlighted as the strongest performing sector but civil engineering and commercial work had improved significantly over this timeframe.
David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said: “The future is looking bright for the UK construction industry as it soars into the final quarter with its strongest performance in over six years, boosted by a strengthening surge in activity broadening out across all sectors.
“The ongoing growth of new business levels, climbing confidence and positive market conditions has resulted in the steepest rise in staffing levels for six years."
KPMG recently conducted its Global Construction Survey 2013: Ready for the Next Big Wave, which highlighted the optimism for companies for the coming months. It found that leaders in UK construction were far more confident about the next five years than they had been in a long time. Respondents were found to be reaching levels not seen since prior to the financial crash of 2008.
The business advisory firm found that 73 per cent of workers in the construction sector are either "positive" or "very positive" when asked about their medium-term outlook for the next two to five years.
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Date: 05/11/2013 16:42:00
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