Rain

Rain

max temp: 12°C

min temp: 9°C

Search

Economy: Markit/CIPS survey reveals strong growth for construction sector

15:26 03 January 2014

Housebuilding continued to lead the way as the construction sector enjoyed another month of strong growth during December, according to the latest Markit/CIPS survey.

Housebuilding continued to lead the way as the construction sector enjoyed another month of strong growth during December, according to the latest Markit/CIPS survey.

New year cheer over the economy continued today as figures revealed activity in the construction sector grew at its fastest pace for more than six years at the end of 2013.

The fourth quarter rate of expansion was the best since the third quarter of 2007, despite a slight easing in the pace of growth last month from a peak in November, according to the closely-watched Markit/CIPS purchasing managers’ index for construction.

The survey showed a reading of 62.1 in December, down from 62.6 the previous month, but still well above the 50 level that separates growth from contraction.

Apart from November, the reading has not been as high since August 2007 and it marks eight months of continuous growth in the sector.

Chris Williamson, chief economist at Markit, said: “The decline merely signalled a modest easing in the rate of expansion from the surging pace of growth.”

David Noble, chief executive of the Chartered Institute for Supply and Purchasing (CIPS), added: “Continued strong expansion marked an outstanding end to 2013 for construction, positioning the sector on a solid recovery path for 2014.”

The figures add to the picture of a sustained recovery, after Markit/CIPS data from the manufacturing sector on Thursday showed it managed its best quarterly performance in two-and-a-half years at the end of 2013.

Meanwhile, a survey from Nationwide showed house prices surged by 8.4% over 2013 across the UK as the market revival became increasingly broad-based and retailer Next joined John Lewis and House of Fraser in reporting strong sales growth during the key Christmas tradinig period on the high street.

The construction PMI figures showed house building. a sub-sector buoyed by initiatives such as Help to Buy and Funding for Lending. remained the fastest growing area of activity in December, though it posted a slower pace of growth than November. Work on commercial projects and civil engineering activity continued to grow strongly, the survey found.

Meanwhile, the majority of firms were optimistic about the coming year, with 57% expecting growth compared with 10% forecasting decline.

Stronger business confidence and a sustained improvement in new order levels continued to drive staff recruitment, the survey found, with increased workforce numbers recorded for the seventh month in a row, the longest continuous period of job creation in five-and-a-half years.

Markit senior economist Tim Moore said: “The latest survey highlights that construction companies enter 2014 with the wind in their sails.”

Howard Archer, chief UK and European economist at IHS Global Insight, said the figures added to hopes that overall economic growth in the fourth quarter can at least match the 0.8% rise in the third quarter.

Continued strong house building was welcome given the shortage in supply while the expansion in the commercial and civil engineering sectors was also positive, he added.

“What is particularly encouraging and bodes well for the sustainability of the construction upturn is that the construction managers survey indicates that the improvement in activity is now widespread across sectors,” he said.

0 comments

Lola the cat has been subjected to a horrific attack, which include having her ears cut off. Picture: GREGG BROWN

The owner of a pet cat who had its ears cut in what has been described as a “horrific” attack has spoken out to warn others.

Final Resting Place by Matthew Clarke, which is in this year's Ipswich and District Photographic Society exhibition. Picture: Matthew Clarke

More than 40 photographers will be exhibiting hundreds of images for this year’s Ipswich and District Photographic Society exhibition.

A bid to save the creche services at Ipswich sports centres failed.

Council tax bills in Ipswich will go up by 2.7% from April.

Ed Sheeran attending the Brit Awards at the O2 Arena, London. PRESS ASSOCIATION Photo. Picture date: Wednesday February 22, 2017. See PA story SHOWBIZ Brits. Photo credit should read: Ian West/PA Wire. Editorial Use Only - No Merchandising

Suffolk’s hit-making chart star, Ed Sheeran, wowed the audience at this year’s Brit Awards with a rendition of his most recent hits.

Elvis Fair leaving Ipswich Crown Court. Picture: Archant

A woman paid an alleged conman from Suffolk who claimed to be a helicopter pilot £300 for a flying lesson for her daughter that never took place, it has been claimed.

UK Power Networks at work in Gainsborough Road, Felixstowe (stock image). Picture: James Fletcher

Extra electricians will be on hand tomorrow in case strong winds cause damage to the region’s power system.

The Orwell Bridge is likely to close on February 23 because of high winds caused by Storm Doris. Picture: MICK WEBB

The Orwell Bridge is likely to be shut tomorrow as winds of up to 70mph batter parts of Suffolk and north Essex.

Thousands of motorists were affected by the rush hour closure of the Orwell Bridge in November 2016

Motorists could be facing travel chaos in and around Ipswich tomorrow as high winds threaten to close part of the A14.

Rubbish found at Church Lane in Sproughton

A 36-year-old man from Ipswich has been prosecuted for fly-tipping just outside the town during 2016.

Storm clouds are gathering over Suffolk as Storm Doris approaches, with an amber weather warning issued for Thursday, February 23. Picture: Sarah Lucy Brown

A storm is set to hit Suffolk and north Essex tomorrow – the not-quite-so-terrifyingly-named Storm Doris.

Most read

Most commented

HOT JOBS

Show Job Lists

Topic pages

Newsletter Sign Up

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24