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03/10/2014

Construction Industry Continues To Grow

British construction industry employers benefited from a strong growth in September, according to new research.

The construction purchasing managers' index compiled by Markit and the Chartered Institute of Purchasing and Supply (CIPS) has posted a score of 64.2 for September, higher than the August reading of 64.

The reading for last month is significantly higher than the 50 mark, which signals a growth in activity rather than a contraction.

The result means activity levels have risen at one of the quickest rates recorded in recent times. January marked the last time the score was higher, when the index reached a level of 64.6 overall.

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As well as pointing to further significant growth among building firms, the September index outperformed the predictions of analysts, who had broadly expected a slight dip in activity.

The house-building sub-sector is largely thought to have propelled the recovery of the British construction industry over recent months.

Ministers have launched schemes such as Help to Buy in an effort to create new opportunities for construction workers, while supporting the wider housing market.

However, the latest data from Markit and the CIPS indicates that the industry is beginning to rebalance itself.

It shows that decent rates of expansion have been seen in terms of commercial work and civil engineering over the past few weeks.

(CD/JP)

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