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Construction has a slow start to the year, but optimism remains high

Published on 19th February 2018

Construction companies remain confident of enjoying a busy 2018, despite the year beginning with a small drop in the number of new orders.

The latest IHS Markit Construction PMI revealed that new orders across the sector fell in January, while there was also a slight decline in residential building activity.

However, researchers found that many construction companies are still positive about their prospects for the year.

Sam Teague, Economist at IHS Markit, explained:

“Constructors’ optimism towards future growth prospects reached a seven-month high. Many forecasted that the soft patch in construction demand would be short-lived and new project wins would pick up throughout the year.”

January also gave us some good news for commercial building and civil engineering. Although only modestly, both areas of construction returned to growth last month, reversing the decline we saw towards the end of 2017 in civil engineering and the 6 months of decline for commercial projects.

When it came to job creation, due to the reduced growth of building activity at the beginning of the year, job creation also dropped to an 18-month low (although there was still a slight rise in employment figures). But although some companies did expand their workforces in preparation of future new projects, the slowed down job creation meant good news for subcontractors, with usage increasing to its highest levels in 10 months.

Kalcrest Site Services are a recruitment agency that specialises in filling vacancies in all areas of construction. Whether you need site labourers and groundworkers, site engineers or quantity surveyors, we can help you find the right candidates to fill your vacancies.

If you have a vacancy that you need to fill right now, or to discuss projects that you’ll need to recruit for in the future, give us a call on 01709 720348 (Rotherham) or 01274 733776 (Bradford), or email

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