Construction buyers report September work surge

Grant Prior 4 years ago
Share

Construction buyers reported the sharpest rise in new business in September since lockdown.

Purchasing activity increased at the quickest pace for nearly five years as the bellwether IHS Markit/CIPS UK Construction Total Activity Index registered 56.8 in September up from 54.6 in August.

Confidence about future prospects was also the brightest for seven months.

House building led the way while the commercial sector also rebounded strongly as civil engineering activity fell for the second month running.

Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply said: “UK Construction took off in September, soaring ahead of both the manufacturing and service sectors in terms of output growth and recording the fastest rise in purchasing activity since October 2015.

“Fuelled by the easing of lockdown measures, new orders rose for the fourth month in a row and at the quickest pace since the beginning of the year before the pandemic struck.

“Of the three monitored sub-sectors, house building was the strongest performer, with activity increasing for the second month in a row, partially driven by residential-related services such as home improvements.

“However, civil engineering took another backwards step and progress worsened significantly as bigger construction developments stayed in suspended animation.

“Government support schemes are winding down, so the bigger worry remains levels of job creation.

“With another drop in employment numbers, vacancies were sparse and further redundancy schemes could be on the cards once this pent-up demand for work is satisfied.

“But for now, builders are stocking up for Brexit and Covid preparations, so purchasing remains strong in spite of longer delivery times and some shortages.

“Optimism is at a seven-month high, so builders are enjoying this resurgence in activity following the summer lows.”

Eliot Kerr, Economist at IHS Markit, which compiles the survey said:”Following August’s slowdown, growth in UK construction activity rebounded strongly in September.

“There were faster increases in activity in both the housing and commercial sub-sectors, which more than offset a sharper decline in civil engineering work.

“Forward-looking indicators point to a sustained rise in activity, with new work increasing at the quickest pace since before the lockdown and sentiment towards the 12-month outlook at its strongest for seven months.

“Meanwhile, latest PMI data pointed to another fall in employment numbers across the UK construction sector.

“That said, the rate of job shedding eased substantially, while building firms upped their purchasing activity in a further sign of encouragement for the months ahead.”

Latest news

Morgan Sindall contracts league champion for second year

Kier ranks second in closely contested race between majors
20 hours ago

New Year layoffs as Scottish modular house builder collapses

East Ayrshire Connect Modular falls into administration
20 hours ago

Thames Water bidders day for £2.2bn reservoir scheme

Tenders to be invited in October for new Abingdon reservoir in Oxfordshire
20 hours ago

Buckingham Plant Hire quits heavy kit market

Firm to sell fleet and focus on lighter, sustainable plant
2 days ago

Clients ‘ignoring building safety’ reforms

Clients still subjecting contractors to aggressive and sub-economic pricing
19 hours ago

Castleforge plans expansion after £100m data centre deal

Investor moves into booming data centre market
19 hours ago

Construction output growth drops to six-month low

Subcontractor rates rise at fastest rate for 18 months
2 days ago

Suir Engineering swoops for Scottish M&E contractor

Irish M&E firm launches UK expansion with Taylor & Fraser acquisition
2 days ago

Aggregates supply firm files administration notice

Ashville Aggregates and Concrete operates across London and South East
2 days ago

Plans in for 44-storey Manchester resi tower

Developer Glenbrook to appoint contractor this year
3 days ago

Briggs & Forrester names new engineering services MD

Will Newman replaces Ian Lawrence who steps down after eight years
2 days ago

Morgan Sindall bags Salford Uni acoustics building

Planning submitted for Acoustics Building at Crescent Innovation area
2 days ago

Lambeth to release six sites for £250m homes plan

Call for development partner to deliver 450 mixed tenure homes
2 days ago

Adrian Speller joins brother as joint MD of Midlands builder

Speller Metcalfe boosts senior leadership team
3 days ago

Winner unveiled for £2.9bn aqueduct revamp

Construction costs for Haweswater Aqueduct rise to £2.9bn from £1.75bn
5 days ago

Fortem and Equans face fight for £3bn housing upkeep deal

Birmingham City Council aims to sign new 10-year deals for four regions
3 days ago

Lendlease strikes deal to sell UK construction arm for £35m

US private equity firm Atlas to finalise purchase deal by summer
7 days ago

Hercules to offload suction excavator arm

Fleet of 30 trucks generates around £5m revenue a year
3 days ago

Tarmac trials new technique to cut concrete road noise

Quieter trips for drivers and longer-lasting roads
3 days ago

HS2 set for “fundamental reset” to lower construction costs

New chief executive promises action after latest project update
1 week ago

Solar panel installer fined £120,000 after roof fall

Court hears how employee broke his leg in fall
7 days ago

Network Rail chief Andrew Haines knighted

Thin pickings for construction in this year's New Year Honours
1 week ago

Staff stunned as engineering consultancy Clarkebond closes

Firm was only bought three months ago by rival Independent Design House Group
2 weeks ago

Vistry issues third profit warning in three months

Profit expected to fall £50m below forecast due to delayed completions
2 weeks ago

Miller Homes buys St Modwen Homes for £215m

Scottish house builder snaps up £368m turnover rival
3 weeks ago

Keltbray fine increased to £18m after failed bid rigging appeal

Contractor loses penalty discount for settling with competition authorities
3 weeks ago

Luxury house builder goes under with 70 job losses

Octagon Developments in administration after 40 years in business
3 weeks ago

Top Ten best read stories of 2024

The biggest headlines of an eventful year. Have a good one and here's to a successful 2025
3 weeks ago

BAM Nuttall fined £800,000 after concrete skip tragedy

Young labourer killed by falling bale arm
3 weeks ago

Keltbray infrastructure business reveals new name

AUREOS means "new dawn" after private equity acquisition
3 weeks ago

Contractor services