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August Survey Unveils Growth in Construction Sector

The Charted Institute of Purchasing and Supply have released their key survey, the monthly purchasing manager index for the construction sector, and the results look promising.

The survey shows that the PMI in the construction sector grew at a steady rate during August, continuing a positive outlook on economic growth during the third quarter of 2015.

The PMI grew from 57.1 in July to 57.3 in August. This figure is well above the 50.00 mark that show expansion in the sector.

In addition to the results of the PMI survey, other positive data recorded during August shows a continuing recovery in the construction market, including an increase in the number of people employed in the construction industry.

 

New Build homes remain strong

New build insurance

The new build sector remained strong and also experienced the fastest rate of growth in the entire construction sector.

Respondents to the survey also said the their outlook within the commercial construction sector had improved which was put down to further improvements in the wider economic outlook in the UK and growing demand from private clients.

Specialists in Construction Insurance

Head of IHS Global Insight, Howard Archer believes the continued growth in house building will be welcomed by the government in their bid to increase the number of new build homes in the UK and solve the housing crisis that has led to a lack of affordable homes for families.

Mr Archer stated that the sector could be a key driving force in a strong economic growth during the third quarter of 2015 if the official figures can back up the positive noises from the survey, despite the fact that growth was limited to a modest expansion of 0.2% from April to June.

The output of the construction industry fell significantly after the financial crisis and during the long term recession, and signs of recovery are vital in sustaining the UK's wider recovery.

The most recent data reinforces the increasingly positive feeling in the sector as construction companies overcome issues such as inflation and labour market skill shortages to meet the increasing demand.

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