CIPS News


Recent expansion in construction sector slows

CIPS 4 August 2010

Construction sector in PMI reports slowdown

The latest Markit/CIPS Purchasing Managers’ Index® (PMI®) for construction showed te weakest activity for four months.

New order levels were still sustained, but employment fell even though output remained steady. The report posted at 54.1, down from June's 58.4.

David Noble, CEO of CIPS said: "Althoigh we've seen a marked slowdown in growth for the UK  construction sector, the warning bells aren't ringing yet and an immediate double-dip seems unlikely. Instead, we're starting to finally see the growth in activity tail-off and normalise at a slightly slower rate.

"Nonetheless, despite rises in new orders and output, it's telling that contractors accommodated the slowdown by making immediate job cuts - reaffirming how tight things still are. In the face of ongoing public sector spending cuts and steep input price inflation, it's really going to be a case of slow and steady wins the race. The industry has to come to terms with a much-altered, post-recession landscape, where full recovery may take some time yet."

For press enquiries, call the Press office on 01780 756777 or email: press@cips.org. The PMI data is available to purchase

 

 

Page Loading
Page Loading