UK construction sector 'firing on all cylinders'
The latest data published as part of the Markit/CIPS Purchase Managers Index for October has revealed the UK benefited from a fifth straight month of improving sentiment within the construction sector in September.Last month witnessed a slight dip in the index from 59.1 in August - a six-year high - to 58.9 in September, with any figure above 50 demonstrating growth within the industry.Furthermore, employment levels in the construction grew for the fourth consecutive month, with the rate of job creation across the industry standing just shy of its best level in the last six years.David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply - co-author of the report - said: "The construction sector is firing on all cylinders."Growth in UK house building hit heights not seen for ten years in September and was supported by a solid acceleration in business from commercial construction, whilst growth in civil engineering remains well above the long run average, rounding off the best quarter of growth in construction since Q2 2010."All the signs now point to the UK construction industry having now turned the corner from the poor performance levels that typified the last few years.This is extremely encouraging news for both developers and the nation as a whole, as the building sector is one of the most important in the country for its contribution towards supported a sustained economic recovery.Tim Moore, senior economist at Markit and author of the Markit/CIPS construction index, added the building industry should no longer be viewed as the "weakest link" in the economy, as a considerable shift both in developer attitudes and output from the sector has now been witnessed over recent months.He concluded developers are also confident a new raft of tender opportunities awaiting them, with many companies acting now to take on additional staff and bolster their budgets ahead of increasing capital expenditure across the industry in the months ahead.
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