Reaction to Markit/CIPS UK Construction PMI for October
Gateley Vinden says the latest results may indicate the economy is picking up after disappointing third quarter.
The Markit/CIPS UK Construction Purchasing Manager’s Index for October has been published and reveals that the construction industry continues to experience strong growth, despite a slight fall on September’s results.
UK construction’s PMI dropped to 58.8 in October, down from 59.9 in September, but still well above the growth threshold of 50 and marks two-and-a-half years of sustained output growth across the UK construction sector.
The housing sector dropped from September’s high, while civil engineering slowed, continuing its recent trend.
Employment also reached its highest level since November 2014.
Once again, construction companies were upbeat about the prospects for growth over the coming 12 months with 59% expecting an increase in business, with only 7% forecasting a drop.
Rob Davis, Managing Consultant at Gateley Vinden – a leading multi-disciplinary consultant company to the built environment – said the figures might show that the economy is beginning to pick up again after a “sluggish” performance over the last quarter.
Mr Davis said: “Following on from the latest strong manufacturing PMI, the construction industry’s PMI figures for October may be an indication that the economy is beginning to perform more strongly after a slightly sluggish last quarter.
“It is clear that a vibrant construction industry has a huge part to play in the success of the UK economy.”