The Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) for August 2015 was 57.3, well above the neutral threshold of 50 and a strong indication that output in the sector is rising.
The residential construction segment was identified as the most important factor in the industry’s growth, a finding backed by Department for Communities and Local Government statistics showing that in the year to the end of June 2015, there were 100,210 private sector houses completed (a rise of 11% on the previous 12 months).
Of the companies surveyed for the PMI, 53% anticipated a rise in business activity over the next year, while only 5% predicted a reduction; a positive outlook that contributed to a high level of job creation and increased use of sub-contractors during August.
However, the ongoing skills shortage remains a problem for companies looking to take on additional work.
Tim Moore, Senior Economist at Markit and author of the Markit/CIPS Construction PMI, said: “The construction sector maintained its position as a strong engine of job creation in August, as permanent staff numbers and sub-contractor demand both picked up over the month.
“However, the surge in construction workloads over the past two-and-a-half years has created substantial skill shortages across the sector, with survey respondents reporting ongoing staff recruitment difficulties this summer.”
Kalcrest Site Services helps construction contractors to deal with the skills shortage by supplying experienced, reference-checked trades, engineers, site managers and labourers for projects on a short or long-term basis.
Call us on 01709 720348 or contact us via firstname.lastname@example.org for more information about our recruitment services.
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