UK construction expands despite higher prices

4 December 2007
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04 December 2007 | Antony Barton

Construction activity in the UK continues to grow, despite higher raw material prices.

According to the latest CIPS/NTC Purchasing Managers' Index for construction, where a figure above 50 represents growth, activity in the sector reached 54.3 in November, down from October's 57.4 and a fourteen-month low.

The index for input prices rose from 61.7 in October to 67.2 - the fastest rate of cost inflation in three months. Companies attributed this to higher prices for a range of materials, including oil and glass.

An increase in new orders, dropping slightly in growth from 61.7 to a nine-month low of 58.6, helped generate more construction activity.

Construction companies continued to recruit staff in November, with the figure falling slightly from 57.2 in October to 55.9. Firms said they expanded their workforces to cope with new orders.

* Further coverage of PMI reports is available at


Birmingham, West Midlands
HS2 Ltd
London (Greater)
£50,800 plus up to £10,000 Recruitment Retention Allowance
House of Lords
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