Construction sector grows but housing slows again

3 May 2005
More news

04 May 2005 | Gareth Mytton

UK builders beat another fall in housing activity as the construction sector enjoyed a slight increase in business, according to May's purchasing managers' index (PMI) report.

The total industry PMI - a composite indicator of overall sector conditions, in which 50 indicates no change on the previous month - was 54.8, a marginal rise on March.

Housebuilders blamed the second successive month of falling activity (at 48.9, down from 49.5) on slower sales and planning delays on new developments. Although the indices fell in both commercial and civil engineering sectors, they remained well above the critical 50 mark.

More than a third of companies said order books had grown since March. They met this with the sharpest rise in purchasing activity for three months, but nearly 90 per cent of respondents said suppliers' delivery times were constant.

Input price inflation was the lowest in almost two years, at 54.4.

Builders made the same use of subcontractors as in the previous month, as their rates showed the smallest rise in eight months.

• Coverage of previous months' UK construction PMI reports is available at http://www.supplymanagement.com/pmi.

SMmay2005

LATEST
JOBS
Swindon, Wiltshire
upto £40K base (+ Paid overtime and corporate benefits)
Honda Manufacturing Ltd
Kew gardens, Richmond upon Thames, London (Greater)
£37,000 - £42,500 per annum pro rata, depending on skills and experience
Kew Royal Botanic Gardens
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE