Increased residential building activity boosts UK construction

CIPS 2 July 2013

Construction activity rises for second month.

The Markit/CIPS Purchasing Managers’ Index® (PMI®) for the construction sector showed stronger growth in June.

Overall output growth was driven by increased housing activity and new order growth reported a 13-month high. The overall index posted at 51.0, up fractionally on thre previous month's 50.8.

David Noble, CIPS CEO commented, "A new dawn is emerging in the cobnstruction industry, with confidence of a sustained recovery beginning to build thanks to two months of consecutive output growth and the pace of new oders ecpansion hitting a 13-month high. Housing is the leading light sustaining last month's performance, meanwhile commercial and civil engineering activity stabilised, arresting months of decline giving further cause for optimism.

"The strongest growth in new business orders for over a year is also driving employment upwards, resuting in confidence hitting its highest level since April 2012. This enthusiasm may also have been bolstered by the Government's support for new house building. Whether expectations match reality, only time will tell.

"Suppliers still bear the scars of the recession reflected in a lack of stock and limited capacity. Coupled with higher average cost burdens, this is placing pressure on supply chains and ost margins. This needs to be rectified, if the sector is to build on this momentum."

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

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