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Construction optimism soars

The construction industry is at its most optimistic in almost a decade, according to a respected report.

More than six in 10 purchasing managers polled by the Chartered Institution of Purchasing and Supply (CIPS) forecasted a rise in output over the next 12 months.

Fewer than one in 20 expected a fall in workloads, giving a positive balance of 58%, the highest since February 2006.

CIPS chief executive David Noble said: “The brakes are now off for the construction sector as it makes up some of the losses over the last few months with a steady and comfortable improvement.

“Though nothing like the highs of 2014, the quietly confident approach after the restraint displayed before the general election shows business confidence at its highest since February 2006.”

The Construction Purchasing Managers’ Index – put together in conjunction with market research firm Markit – found that construction activity grew last month at its fastest rate since this February.

An index reading of 58.1 was given in June, where anything above 50 represents growth from the previous month. An upturn in infrastructure work played a key part.

“Residential activity remained the fastest growing area of construction output in June,” said CIPS. “However, the acceleration in the headline index since May was driven by a sharp upturn in both commercial and civil engineering activity growth over the month.”

 

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