Reaction to Markit/CIPS UK Construction PMI for January
The Markit/CIPS UK Construction PMI for January has been released and reveals that the industry experienced a slowdown in growth at the beginning of 2016.
UK construction’s PMI fell to 55.0, down from December’s figure of 57.8, still well above the growth threshold of 50 but registering the slowest period of growth since April 2015.
Commercial work was once again the best performing sector but its growth was still the lowest since last June.
Housebuilding saw its weakest period of growth for over two and half years, while civil engineering was the lowest performing sector.
Businesses remained upbeat about the prospects for growth over the next year, with 46% of respondents predicting an increase in activity and only 7% expecting to see a downturn. There was some concern expressed, however, that underlying demand conditions had begun to soften.
Martin Bennett, a Regional Director at The Vinden Partnership – a leading multi-disciplinary consultant company to the built environment commented: “The slowdown in the industry is, on the surface, disappointing but if we look closer the positivity about the coming 12 months from people within the industry is extremely high.
“There has been some uncertainty in the global markets recently and that has made businesses more cautious than they otherwise would be. However, with the reports of strong order books and the continued investment from the government in housebuilding and large infrastructure projects, I expect the construction industry to perform more strongly as we move further into 2016.”