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UK construction – still growing strong!

As the spring weather improves it’s expected that house-building activity will continue to increase at an impressive rate. Kinder natural elements coupled with optimism throughout the industry are combining to have a strongly beneficial effect on levels of growth. Indeed recent indications from the Markit construction purchasing managers index shows that construction firms are reporting the brightest outlook since January 2007 - growing for 11 months in a row. The rate of growth in some areas slowed down during February, mainly due to the bad weather; but subsequent factors indicate that the industry is set to benefit from a period of sustained activity.

The monthly Markit survey gives an insight into the sector in terms of output, staffing and ordering, as well as general levels of optimism. The March survey showed a level of 62.5 - little change from February and lower than the near six-and-a-half year high recorded in January (64.6). However, latest levels signify a sharp overall expansion of UK construction activity and the index has now registered above the 50.0 for 11 months in a row.
               
During the economic downturn, many highly skilled workers left the industry, resulting in a number of capacity problems. Now with the jobs market seeing considerable growth in the past month and job creation at a three-month high, a decline in the availability of subcontractors is being reported. However those who still in the industry are seeing an increase in their rates and availability has fallen for eight straight months, indicating that there are more jobs now available within the industry.

One of highest level of growth areas, taking over from the housing market, is the civil engineering sector, which is seeing its fastest increase since 1997. Local authorities are spending more on capital projects and other maintenance work, and with the bad weather being partly responsible for the slowdown of the housing market, a number of flood defence projects are underway. 

Growth within the construction sector has been maintained over a number of months. This is having a positive impact on businesses who are starting to see the benefits of this growth - resulting in a more optimistic feeling about future prospects. Anderselite share this positive outlook and expect to see a continuation of the uplift for some time to come.

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