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04/11/2015

Survey Reveals Rise In Construction Activity

Construction activity is still continuing to rise, according to the latest statistics.

The latest Market/CIPS UK Construction PMI survey reveals the industry experienced its fastest rise in new work for 12 months.

Commercial building was the main driver of growth as it saw a faster increase than in September.

The report measured 58.8 in October, down from 59.9 in September but still well above the 50.0 no-change threshold.

The results marked two-and-a-half years of sustained output growth across the UK construction sector.

Respondents also suggested greater output volumes reflected a strong pipeline of work-in-hand, alongside faster new order growth over the month, the steepest since October 2014.

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Overall, companies remain upbeat about their prospects for growth over the next 12 months, with 59% forecasting a rise in business activity and only 7% expecting a decline.

Tim Moore, Senior Economist at Markit and author of the Markit/CIPS Construction PMI, said: "October's survey indicates that the UK construction sector remains firmly in expansion mode, although commercial building work was the only category to experience faster growth than in September.

"Another relatively buoyant construction PMI reading indicates that the sector remains in rude health. Rather than acting as a drag on the economy, as suggested by recent GDP estimates, the sector is continuing to act as an important driving force behind the ongoing UK economic upturn.

"Construction companies also noted a rebound in new business flows during October and responded to rising workloads by taking on extra staff at the fastest rate for almost a year. Shortages of skilled staff persisted as a result, with the current period of falling sub-contractor availability the longest seen in over a decade."

(LM/CD)

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