The latest Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) revealed that UK construction companies indicated a strong expansion of business activity in November.
Despite softer rates of output and new business growth, the latest survey pointed to resilient and strong job creation across the construction sector.
Furthermore, the pace of employment growth has picked up compared to the previous month and was still relatively close to the survey-record high seen in July. Meanwhile, increased workloads contributed to a solid rise in sub-contractor usage in November. Latest data also recorded the fastest rise in sub-contractor charges since the survey began in April 1997.
Tim Moore, Senior Economist at Markit and author of the Markit/CIPS Construction PMI®, commented, “The construction sector remains a strong growth engine within the UK economy, but momentum has undoubtedly cooled since the summer
“Construction companies responded to rising workloads by boosting their staffing levels at an accelerated pace in November. Moreover, surging demand for skilled construction workers fed through to the steepest increase in sub-contractor charges since the survey began in 1997.
“Looking ahead, construction firms are optimistic overall about their growth prospects for the next 12 months, reflecting strong confidence that positive spending patterns will continue.
David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, added, “The sector continues to enjoy strong recovery and higher levels of activity, even if the rate of expansion has slowed a little compared to recent months.