Partner Article

Construction industry continues to expand

The construction industry expanded at the end of 2013, as new orders and employment increased.

According to the Construction Purchasing Managers’ Index, sector businesses anticipate an increase in activity over the course of 2014.

In November, the Index was at a 75-month peak of 62.1 points, well above the 50 point value that separates expansion from contraction.

Work on commercial projects rose at the fastest pace since August 2007 and residential activity remained the fastest growing area.

Staff recruitment also increased throughout December as job creation has now occurred continuously over a five-and-a-half year period.

David Noble, CEO at the Chartered Institute of Purchasing & Supply, said: “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.”

This was posted in Bdaily's Members' News section by Tom Keighley .