UK Construction grows steadily.

CIPS 2 August 2011

Construction remains level

Construction saw a growth of both new orders and output, broadly consistent with rates seen in June. The July Markit/CIPS Purchasing Managers’ Index® (PMI®) data posted at 53.5, only marginally lower than Junes 53.6.

Staff cuts have been recorded for second successive month and positions are not being refilled. Businesses are optimistic that activity will pick up over the coming year but historically confidence still remained low.

David Noble, CEO of CIPS, said, “It’s a case of ‘as you were’ for the UK construction sector this month with little change in the rate of activity growth since June. Whilst the sector is battling against poor economic sentiment, high inflation and continued worries in the Eurozone, the sustained growth, albeit at a historically mild pace, has to be seen as a positive, especially compared to the fallback in the manufacturing sector.

“A continued rise in new orders suggests that activity should be supported in the near-term, but confidence regarding potential activity growth for the next year remains relatively subdued. Subsequently, firms are purchasing only to meet current requirements and remain cautious about replacing leaving staff, as the general mood remains uncertain.”

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

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