Latest data released by Markit/CIPS - 4 November 2021
- Prior 52.6
Output growth picked up slightly last month but supply-side issues are still persisting and that is likely to weigh further on overall activity going into year-end and next year. Of note, house building replaced commercial work as the best-performing category of construction work
in October. Markit notes that:
"UK construction companies achieved a faster expansion of output volumes in October, despite headwinds from severe supply constraints and escalating costs. House building showed the most resilience, as signalled by the fastest rise in residential work for three months.
"However, the volatile price and supply environment added to business uncertainty and continued to impede contract negotiations. As a result, the overall rate of new order growth was unchanged from the eight-month low seen in September.
"There were widespread reports that shortages of materials and staff had disrupted work on site, while rising fuel and energy prices added to pressure on costs. Nonetheless, the worst phase of the supply crunch may have passed, as the number of construction firms citing supplier delays fell to 54% in October, down from 63% in September. Similarly, reports of rising purchasing costs continued to recede from the record highs seen this summer."
