In yesterday’s report published by UK Construction Week, construction looks like it’s on the up, with construction output growing at its fastest pace since December 2018. Following a 9-month period of declining workloads, UK construction companies are ‘signalled a return to business growth’ during February 2020.
At 52.6 in February, up from 48.4 in January, the IHS Markit/CIPS UK Construction Total Activity Index registered above the 50.0 no-change value for the first time since April 2019. Looking at performance, residential construction remains the best-performing category.
Commercial work returns to growth in February, with the sub-sector posting its fastest increase in business activity since November 2018. February points to a strong recovery for new orders. With high levels of new work coming in, employment within the industry is stabilising.
The greater tender opportunities and the release of spending were delayed by the run up to Brexit. Due to uncertainty decreasing as Brexit was announced, purchasing activity is growing which led to the increase in construction output levels. Construction firms are now becoming more optimistic about the industry’s growth prospects for the next 12 months.