The construction sector in the UK finally returns to growth but still needs more growth
The construction sector is one of the most diverse and broad sectors. It is one of the few such sectors which offer work and growth to everybody. In addition to being diverse, the construction sector is also one of the most productive and profitable sectors. Furthermore, construction also leads to the development of small communities, areas, cities and ultimately, the country. Just like the other countries of the world, construction was also considered a very strong and prolific sector in the United Kingdom.
Unfortunately, the construction sector faced a slump in the country in September this year. The good news, however, is this that the construction firms in the UK have now started to recover slightly from the decline. It must be noted that, the slight lift is not enough to inspire future investments in the construction sector.
The slight increased activity in the construction area can solely be attributed to residential projects and house building, since the commercial sector and infrastructure have continued to decline since October. There is little hope as the Purchasing Managers’ Index (PMI) score shifted up to 50.8 from 48.1 in September. Any number above 50 on the index indicates growth.
This article provides information regarding the current scenario of the construction sector in the United Kingdom and sheds some light on the future of this sector in the country.
Read the complete article to obtain detailed information regarding the construction sector in the UK!
Tim Moore of IHS Markit, which produces the PMI scores, said that while a rise in house building had offered a “bright spot” it was a difficult month for the construction sector. Commercial activity and civil engineers were seeing “sustained declines”, he added.
The sector is far from out of the woods, according to Samuel Tombs of Pantheon Economics. The PMI score was consistent with a fall in output of 0.5pc quarter-on-quarter in the last three months of the year, he said. Duncan Brock, of the Chartered Institute of Procurement and Supply, said that the sector needed to rebalance away from house building, and called for action on skills from the Chancellor Philip Hammond in his November Budget.
Author: Anna Isaac
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