Where 2013 has been yet another challenging year for the construction industry, there are finally signs that recovery is in progress and the industry should be optimistic about the prospects for 2014.
The good news to round this year off is that the UK’s construction sector showed a huge upward trend last month and construction companies are reporting that activity grew at the fastest pace since 2007.
Activity in the construction sector is measured by the Markit/CIPS PMI. This indicator flew up to 62.6 in November compared to 59.4 in October which is the highest reading since August 2007 and is the seventh consecutive month to show an increase. Markit reported that Growth in house-building in November was the fastest in 10 years and that there had been “sharp increases in new orders and employment”
Markit’s PMI survey is compiled in a way that any reading of 50 or more indicates a rise in activity across the sector.
Glenigan have also conducted research into next year’s prospects for the industry and have concluded that “private sector investment will be essential for sustained recovery in construction and is expected to increase in 2014 and beyond”
Glenigan’s Construction Prospects for 2014 report forecasts construction starts across the industry to grow by 4 per cent next year following on from an upturn of 2.5% in 2013.
The report is based on a robust increase in the value of planning approvals in 2013 giving rise to a healthy development forecast for
Civil engineering and infrastructure work will also support the recovery as there is more of a focus in investing roads than on rail projects in the coming months.
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