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Housebuilding Helps Construction Output Rise
According to new figures released by The Chartered Institute of Procurement & Supply, the construction industry, and those involved in building works such as industrial scaffolding companies and brick laying contractors, saw an increase in work for the first time in five months in November, bouncing back after a slump during the summer months.
The PMI index, which shows economic indicators from a variety of surveys, showed a reading of 53.1 in November, up from 50.8 in October. A reading of over 50 shows positive growth within the sector, according to AOL.
Extra housing projects are the main reason for the growth and as these continue to grow so will the economic indicators, although civil engineering and some commercial construction showed their weakest indicators due to the shadow of Brexit and the uncertainty of the economy which comes with it.
With a sustained drop in the growth of civil engineering due to a decline in new contracts, after three months this sector has the worst report in four years, but there are hope from constructions executives that this will pick up in the near future. As contracts from energy and transport sectors increase, so will workloads.
Director of customer relationships at the Chartered Institute of Procurement & Supply (CIPS), Duncan Brock, interpreted the figures into feeling in the construction sector: “It appears that policy support and a small recovery in the UK economy has boosted sentiment and encouraged clients to come out of their shells and start building again. The housing sector was the primary driver of growth increasing at the fastest rate for almost half a year.”
Also, with lower mortgage rates than ever and great help-to-buy schemes and incentives for first time buyers, new housing project will continue to grow, seeing this sectors continued growth.