Job creation in the construction sector rises at record speed
According to a new survey of buyer, the rate of job creation during July hit highest speeds since April 1997.
The Markit/CIPS UK Construction Purchasing Managers’ Index showed that the month of June experienced a four-month high of 62.6, indicating fast-growing expansion.
Housing remains to be the strongest performer but the growth of the overall construction sector was one of the fastest in 7 years.
The survey also demonstrated a drop in subcontractor availability for the 13th month running, while rates charged by subcontractors climbed at record rates.
Those surveyed reported low stocks and capacity shortages at suppliers and average cost burdens increased dramatically, with input price inflation easing only little from June’s six-month high.
Tim Moore, senior economist at Markit, said:
“Looking ahead, a pressing concern for construction companies is the availability of materials and suitably skilled labour to support the recent growth streak.
“Cuts to supplier capacity have ushered in the worst period of input delivery delays since the survey began, while this summer has also been notable for construction firms reporting near-record increases in rates commanded for subcontracted work.”
David Noble, group CEO, CIPS, added:
“One concern is the strain on supply chains that could become a roadblock to sustained growth in the future. Construction firms reported the sharpest deterioration in the quality of subcontracted work since 1999, which combined with lengthening supplier delivery times could conspire to put the brakes on the sector’s growth.”
Source: Supply Management