CIPS News


Sharp rate of construction output growth maintained in December

CIPS 3 January 2014

Strong output rises recorded in all three broad areas of construction activity

The Markit/CIPS Purchasing Managers’ Index® (PMI®) for the construction industry showed the fastest increase in commercial work since August 2007.

Down slightly from the previous month's high of 62.6, December's 62.1 revealed a positive outlook for construction activity in 2014.

CIPS Group CEO David Noble commented:

"Continued strong expansion marked an outstanding end to 2013 for UK construction, positioning the sector on a solid recovery path for 2014. Whilst housing remained the fastest growing activity and civil engineering maintained its pace, commercial activity reported the sharpest rate of expansion since August 2007; an indicator of the broadening out of the recovery. The positive business outlook and soaring confidence reported in December suggests this upswing will be maintained well into the New Year.

"It is pleasing to see the growth in the sector leading to such significant hiring of staff. As construction reported its strongest quarterly performance since Q3 2007 and as levels of new orders continue to rise, job creation is ramping up and has now been increasing for seven consecutive months. This is a good sign that activity will remain strong in the months ahead.

"The natural consequences of the rapid jump in construction activity during 2013 have been the continued squeeze on stocks at supplier level and the lengthening of delivery times. These pressures, alongside increasing business costs, will remain in 2014, but with hopes that they won’t prolong."

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

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