Reaction to Markit CIPS UK construction PMI for December 2016

Reaction to Markit CIPS UK construction PMI for December 2016

Gateley Vinden says construction industry’s ability to weather Brexit uncertainty is remarkable.

Reaction to Markit/CIPS UK construction PMI for December

December’s Markit/CIPS UK Construction PMI figures has revealed that construction industry output growth reached an 11-month high.

The construction PMI reading for December was 54.2, up from November’s figure of 52.8 – well above the threshold for growth of 50.0.

Housebuilding was a key driver in the better-than-expected figures and was the best performing sub-category as it enjoyed its sharpest growth rate since January.

The civil engineering sector, which had been a poor performer in recent months, also saw projects pick up at a robust pace throughout December.

Employment levels reached their highest levels since May but were still well down on the highs seen in mid-2013.

The was a positive outlook from respondents to the survey with 48% reporting that they expected to see a rise in business activity during the next 12 months, with only 13% forecasting a decrease.

Peter Vinden, Managing Director of Gateley Vinden – a leading multi-disciplinary consultant company to the built environment said: “The construction industry’s ability to weather the Brexit storm has been truly remarkable.

“The short term fortunes of the sector appear positive as housing and civil engineering projects have a strong pipeline of work. It is also encouraging to see employment levels heading in the right direction.

“Looking further ahead, the rising cost inflation remains a worry and of course the spectre of how the economy will react when Brexit becomes reality will be the acid test for the construction industry.”