Construction buyers report surge in workloads

Construction buyers reported the strongest surge in activity last month since March.

The Markit/CIPS UK Construction PMI ticked-up to 52.8 in November from 52.6 in October.

Any reading above 50 represents a growing market.

Commercial work improved for the first time in six months but input cost-inflation raced ahead to a five-and-a-half year high.

David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said: “The sector was on a firmer footing this month, as a slight uptick in overall activity and the strongest level of new business growth since March, resulted in more stability after a summer of uncertainty at  the time of the EU vote.

“Purchasing activity grew at its fastest pace since the  beginning of the year as stronger workflows and  tenders materialising into actual projects prompted increased levels of stock building.

“This resulted in a sluggish response from suppliers, with the fastest lengthening of delivery times since June, as pressure on capacity and low stocks impacted on demand.

“The impact of the weaker pound was widely felt in November, with cost inflation the strongest since early 2011.

“Higher prices were reported for a number of materials including bricks, blocks and slate, as businesses struggled with managing costs.

“Yet, in spite of this grip on precious margins,  headcounts were  increased and demand for subcontractors was also sustained.”

from Construction Enquirer http://www.constructionenquirer.com/2016/12/02/construction-buyers-report-surge-in-workloads/

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