Construction buyers report surge in new orders

Construction buyers reported the fastest rise in new order volumes since January 2016 last month.

The surge comes as the Markit/CPS UK PMI Index rose to 54.2 in December from 52.8 the previous month.

It was the fastest rate of expansion since last March and the fourth month of consecutive growth recorded by buyers.

The report stated: “New business volumes expanded at the strongest rate for 11 months in December, which marked a sustained recovery from the soft patch seen in mid-2016.

“Reports from survey respondents cited rising client demand and a resilient economic backdrop.

“Greater workloads encouraged a further solid increase in staff recruitment across the construction sector.”

Cost pressures continued to intensify as the rise in input costs hit its highest rate for more than five years.

Tim Moore, Senior Economist at IHS Markit and author of the report said: “December’s survey data confirmed a solid rebound in UK construction output during the final quarter of 2016.

“All three main areas of construction activity have started to recover from last summer’s soft patch, but in each case growth remains much weaker than the cyclical peaks seen in 2014.”

from Construction Enquirer http://www.constructionenquirer.com/2017/01/04/construction-buyers-report-surge-in-new-orders/

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