The Markit/CIPS Purchasing Managers’ Index® (PMI®) for the construction sector showed residential construction rose at the fastest rate since November 2003.
Posting at 58.9 in September, the PMI also showed the highest business optimism since April 2010.
Commenting on the report, David Noble, Global Chief Executive Officer at the Chartered Institute of Purchasing & Supply, said:
“The construction sector is firing on all cylinders. Growth in UK house building hit heights not seen for ten years in September, and was supported by a solid acceleration in business from commercial construction, whilst growth in civil engineering remains well above the long run average, rounding off the best quarter of growth in construction since Q2 2010. Confidence is now at its strongest in almost 3 and a half years building strong momentum going into the final quarter.
“Having been in the doldrums for so long, builders are using this renewal as a platform to invest, with employment seeing the most dramatic upturn in close to 6 years.
“Inevitably, purchasing levels have also increased, but the adverse effect of this is increased pressure on suppliers to meet growing levels of demand, to the extent that their performance deteriorated at the fastest rate for 16 years.
“These pressures, along with increased cost burdens have the potential to act as a brake on the sector, but should not overshadow the overwhelmingly positive picture for UK construction."
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