Residential construction is still very strong but fell back slightly to 66.4 from 68.0 in July.
Employment edged back slightly, but remains strong too. There are increased signs of suppliers feeling the heat as delivery times from vendors lengthened to the highest since the survey began. Low stocks and capacity pressure are resulting in worsening supplier performance.
Skilled workers are still hard to come by and that is pushing up pay levels. This is one sector that is still holding onto its recovery.
“UK construction firms saw one of the sharpest rises in output for seven years in August, with increasing workloads driven by an array of factors including surging homebuilding activity, greater infrastructure spending and renewed confidence within the commercial development sector. A broad-based upturn in construction demand has created a boom in job creation this summer, as construction companies look to replace capacity lost in the aftermath of the recession. “Supply chain pressures intensified during August,as falling stocks and strong demand for inputs contributed to the steepest lengthening of vendor delivery times since the survey began 17 years ago.”
UK Markit/CIPS construction PMI 02 09 2014
The pound looked like it wanted to buy the good number but it’s been slapped down from 1.6579 to the lows at 1.6555. It’s a good report but the dollar is in the driving seat right now.
Aug UK Markit/CIPS construction PMI 02 09 2014
