–Sep CIPS Construction Index 53.8 Vs 52.1 In Aug
LONDON (MNI) – The pace of activity in the U.K. construction sector
accelerated in September, although job cuts increased and confidence
weakened, according to the latest Markit/CIPS survey.
The Markit/CIPS Construction Purchasing Managers’ Index for
September rose to 53.8 from 52.1 in August. But CIPS said confidence
over future business expectations was markedly lower, and jobs were cut
at the fastest pace in six months.
The pick up in activity was driven by the commercial and civil
engineering sub-sectors, with civil engineering seeing the strongest
activity growth since February 2008.
The pace of new orders growth eased again. Although new orders
increased for the seventh consecutive month, the rate of increase has
declined four months in a row and September saw the slowest growth for
seventh months. Construction employment decreased for a third
consecutive month.
In the second quarter construction was one of the motors behind
above trend UK GDP growth of 1.2% on the quarter, rising by 9.5%,
revised up from 8.5% in the previous estimate.
Third quarter construction growth looks set to come in markedly
weaker than this.
“Whilst the construction sector is still growing, a sharp fall in
confidence suggests work in the pipeline may not be so strong. Not since
the onset of the recession have we seen optimism in such short supply,”
David Noble, Chief Executive Officer at the CIPS, said.
“Firms continue to nervously reassess their resourcing
requirements, suggesting that staffing costs will be squeezed for the
foreseeable future,” Noble added.
–London newsroom: +44 207 862 7491; email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$,MT$$$$]
