Strongest construction output growth since June 2010, led by surge in housing activity

CIPS 2 August 2013

Recovery gathers pace as business activity risis for third month running.

The Markit/CIPS Purchasing Managers’ Index® (PMI®) for the construction sector offers new hope that the UK economy is improving.

With residential construction increasing at fastest pace since June 2010 and steepest improvement in new order levels since April 2012, wih the index posting at 57.0 up sharply from last month's 51.0.

David Noble, CIPS CEO said: 

Homes are the beating heart of this rapid recovery in the construction sector, backed by a solid expansion in civil engineering and commercial activity. Better economic conditions, a jump in new business activity and the strongest rise in confidence since the era of austerity began in 2010, strongly suggest this growth can be sustained into Q3. 

The rising confidence goes hand in hand with increasing output, underpinned by the expansion in new business orders, which was the steepest since April 2012. As a result, firms are starting to believe this is the real deal for the recovery, demonstrated by the strongest pace of job creation since December 2011.

One contraint on the sector is the pressure on suppliers to meet the sharp rise in demand. Suppliers have been surprised by the speed and scale of the revival leading to lengthy delivery times due to a shortage of capacity based on hard learnt lessons over the past few years. This will be something to watch in the coming months."

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

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