02.12.2003

UK construction activity booming

The UK Purchasing Managers Index report on construction, published today, shows the strongest expansion of activity since June 2001.

The headline seasonally adjusted Index rose to 60.5 in November from 58.9 in October.

Panel firms attributed higher levels of activity to strong gains in new business as improved confidence resulted in clients being more willing to commit to new contracts.

All six segments that make up the headline total activity were labeled as “increasing” in November with housing and input prices showing the fastest rate of change. Commercial activity, a sector particularly relevant to the cranes and access sectors, increased during the month indicating further strong growth of commercial construction, but at a slower pace than during ghe previous month. Civil engineering meanwhile saw activity grow for the seventh consecutive month and at the fastest rate since November 2002.

Roy Ayliffe, director of professional practice at the Chartered Institute of Purchasing and Supply, said: “Purchasing managers reacted to the construction sector’s stronger growth in November by increasing purchasing activity and in turn placing pressure on suppliers’ capacity, using strict inventory strategies. This expansion, at its fastest rate since June 2001, was driven by increased volumes of new business and rising client confidence."

UK construction companies remained optimistic in November that activity levels would rise over the coming year.