UK builders have reported a “welcome combination” of increased business activity and an easing of supply chain disruptions and price pressures.
The IHS Markit/Cips UK construction purchasing managers’ index rose to a four-month high of 55.5 in November, from 54.6 in October, signalling a robust and accelerated expansion of activity.
Commercial construction drove the increase, with that sub-index rising to 56.5, reflecting stronger economic conditions and incoming projects.
In contrast, growth in housebuilding slowed to 54.7 from 55.4 in the previous month. A reading above 50 indicates a majority of businesses reporting an expansion compared with the previous month.
The figures highlight “a welcome combination of faster output growth and softer price inflation across the UK construction sector”, said Tim Moore, director at IHS Markit, which compiles the survey.
He added that input price inflation remains extremely strong, but it has started to trend downwards after hitting multi-decade peaks this summer.
The latest rise in purchasing costs was the slowest since April, helped by a turnround in supply chain disruption and a slowdown in input buying.
The portion of survey respondents citing longer delivery times fell to 47 per cent in November, from a peak of 77 per cent in June.
The sector has enjoyed a rebound “with the fastest level of output growth for four months”, said Duncan Brock, group director at the Chartered Institute of Procurement & Supply, “as supply chain managers increased their purchasing activity to meet a strong pipeline of new building projects.”
Credit: Source link
