UK construction sector expanded more than expected in September
The UK construction sector expanded at its fastest pace in six months in September.
The CIPS/Markit construction Purchasing Managers’ Index (PMI) increased to 59.9 in September, up from 57.3 the month before and at up to its highest level since February.
The figure was above what economists expected of 57.5 in a Reuters poll.
Any reading over 50 indicates that activity in the sector is accelerating.
The survey revealed that activity picked up in both commercial and civil engineering.
In addition, only 6 percent of companies surveyed expect a slowdown in business activity and staffing levels in construction increased strongly.
A boost in residential building was one of the main factors that helped push activity
According to CITY AM, Tim Moore, senior economist at Markit, said that a lack of high-skilled workers poses a threat to the sector’s future:
“Construction firms enjoyed a strong finish to the third quarter of 2015, as a sustained rebound in new development projects continued to have an impact on the ground.
“Moreover, September data suggests that the UK construction sector is still experiencing its most intense cycle of job hiring for at least 15 years, and consequently skill shortages remain a dominant concern across the industry.”
Results of the CIPS/Markit survey on the dominant services sector is going to be released on Monday. Analysts are eagerly waiting to see the results as it will provide a much better picture of how much the UK economy has cooled in recent months.