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

HS2 starts work on UK’s longest railway bridge

HS2 starts work on UK’s longest railway bridge

The Colne Valley Viaduct will be the UK’s longest railway bridge, stretching for more than two miles across a series of lakes and waterways between Hillingdon and the M25.   The railway bridge is designed to improve rail links between London, Birmingham and North, help

Ovarro pollution early-warning technology chosen by Anglian Water

Ovarro pollution early-warning technology chosen by Anglian Water

In a world-first, the UK utility is implementing early-warning system BurstDetect from technology company Ovarro, as part of its drive to eliminate serious pollution events in its region by 2025.   Through a dashboard, BurstDetect provides an overview of system status together with current

A smarter focus on wastewater flows and levels

A smarter focus on wastewater flows and levels

The Government has just concluded its consultation on developing a Storm Overflow Discharge Reduction Plan (SORP). Andy Godley, from the Water Research Centre (WRc), looks at the latest developments in wastewater flows and levels.   It is difficult to argue with the sentiments behind the

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.