February 2015 sees a surge in UK construction activity

February 2015 sees a surge in UK construction activity

 

According to the latest Markit/CIPS UK Construction PMI, following a dip at the end of 2014, the UK construction industry unexpectedly surged to a four-month high in February, lending to a strong start in 2015.

 

Residential, commercial and civil engineering all saw a rise in February, with the index for February registered at 60.1 – an increase from 59.9 in January. Most firms surveyed attributed growth to improved economic conditions, strong workloads and growing confidence amongst clients.

 

Chris Williamson, chief UK economist at Markit, said: “The survey has recorded a remarkably strong spell of continuous growth since July 2013, fuelled initially by rising house building activity amid government incentives for homebuyers but rapidly becoming more broad-based as the wider economic recovery took hold. The latest data suggest that, while the pace of expansion has cooled since the peaks seen late last year, the recovery retains strong momentum.”

 

It is predicted, however, that growth is likely to slow down later on in the year: “However, although construction sector optimism picked up in February, it remains well below last year’s highs, adding to evidence which suggest the pace of expansion, and therefore earnings and dividend growth, in the construction sector will slow in 2015.

 

“The sector is likely to see weaker demand for building projects as some uncertainty sets in around the general election.”

 

In April, the return of cuts in public services will affect firms that depend on housing repair and maintenance work, dampening activity within the sector. Most councils have agreed to cuts of 12% on average for the 2015/2016 financial year.

 

The construction industry accounts for approximately 6% of the UK economy.

Please rate

Comments 

Ctrl + Enter

Most Read

How Blockchain Technology is changing the Energy Sector

How Blockchain Technology is changing the Energy Sector

The disruptive potential of blockchain technology is becoming more evident with every passing day. From the proliferation of cryptocurrencies, and its increasing applications in other areas including banking, gaming, music licensing, as well as the energy sector, blockchain technology is

How to deal with interview rejection

How to deal with interview rejection

Sorry we think you’re not the ideal fit for this position or sorry to inform you, but you are not exactly the candidate we were hoping for – these are some of the replies you may get from an unsuccessful interview, and while it can sting for a day or two, you should not dwell on it any

The water sector in the UK: The AMP6 and AMP7 period

The water sector in the UK: The AMP6 and AMP7 period

Originally, the water sector in the United Kingdom was controlled by the Government. It was not until 1989 that privatisation of state-owned enterprises by Margaret Thatcher’s led government resulted in the control of the water industry by the private sector.   However, regulation of

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.