The UK’s construction industry grew at its fastest rate in over a year in July, in a surprise for economists who had predicted a growth slowdown for the sector.
Growth and decline in the industry are identified through the Purchasing Managers’ Index (PMI), an economic indicator that is sourced via surveys of businesses within the construction industry. The PMI for July came out at 55.8, a significant jump from June’s PMI of 53.1 and much higher than the predicted 52.8.
The same cannot be said for the manufacturing industry, however, which had a disappointing reading for July, which many are attributing to the value of the pound, as well as uncertainty surrounding Brexit.
A large proportion of growth in the construction industry has been credited to increased housebuilding, which is currently at its highest level since 2015. In addition to this, it was found that employment within construction has also increased, as well as the number of orders that construction businesses were receiving.
This is a positive step forward for the industry following a rather dismal beginning as icy weather halted a number of construction projects across the UK, causing a 0.8% fall in the first quarter of 2018.
Opportunities for construction contractors
If this growth is to continue in its upwards ascent, there will be increased opportunities for contractors within the construction industry, not least due to the significant increase in housebuilding as a result of government initiatives.
There are, however, still a number of issues facing the industry that must be tackled over the coming months and years. First and foremost, the skills shortage currently facing construction will ultimately stunt growth if not addressed. In addition to this, delays in planning, regulatory restrictions and financial factors are all cited as worries for contractors.
For now, it seems as though the construction sector is faring well, in spite of Brexit worries and many other factors. For Sterling CIS contractors, we have been able to help them source a great number of opportunities within the sector and we predict more to come as government projects, such as further housing, advance.
Are you a construction contractor looking to register with a reliable umbrella company? Speak to our team today for more information on the benefits and to register with Sterling.