Construction industry optimistic for 2012
03/02/2012 16:58
Members of the construction industry are more optimistic about its growth in 2012, the latest UK Construction Purchasing Managers Index (PMI) shows. Despite the fact that employment for skilled tradespersons remained stationary in January, the sector recorded a huge rise in confidence for the months ahead.
The PMI recorded the second biggest increase in confidence in its history, reaching an eight-month high.
Although declines were seen in both the housing and civil engineering sectors, commercial activity continued on strong growth trajectory.
Commercial activity saw its 23rd consecutive monthly increase, which was described as being "solid" and slightly faster than that recorded in December.
Furthermore, the level of new business received by UK construction firms continued to increase, although the rate of growth eased.
David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, which produces the index along with Markit, said: "It's clear that many businesses have replenished their levels of optimism and have high expectations for improving economic conditions and new contracts.
"This confidence bodes well for the year ahead, although this visibility over potential new business will need to convert quickly into tangible work if employment levels are to improve."
The UK manufacturing PMI rose to an eight-month high in January, with output in the sector also increasing to its highest level since March 2011.
However, Mr Noble said it is still too early to tell how sustainable this trend is.
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Posted by Sophie O'Meara
