Reaction to Markit/CIPS UK construction PMI for December
The Vinden Partnership says construction industry’s ability to weather Brexit uncertainty is remarkable.
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 The Vinden Partnership – 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.”