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 

Name
Email
  Ctrl + Enter

Most Read

Thames Water announces partners for its AMP7 programme

Thames Water announces partners for its AMP7 programme

The clean and wastewater projects will include schemes to provide additional resilience to potable water supplies and protecting and enhancing the environment within communities across London and the Thames Valley. The frameworks are extendable into AMP8 and could see Thames award up to £4

Suttons Tankers wins Yorkshire Water £60m AMP7/8 contract

Suttons Tankers wins Yorkshire Water £60m AMP7/8 contract

The bioresources sludge removal and transport services deal will cover the transportation for all internal liquid sludge and raw sludge cake from sewage works to sludge treatment centres. Over the course of the contract a 15% carbon savings has been forecast, which forms part of Yorkshire

Govt & Ofwat call on water companies to accelerate AMP7/8 plans

Govt & Ofwat call on water companies to accelerate AMP7/8 plans

In an joint letter to UK water companies, the Government, the Environment Agency, the Drinking Water Inspectorate, Ofwat and CCW have called on them to accelerate their existing AMP7 plans – and consider bringing future investment from 2025 and beyond forward.The letter says they can play

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.