Construction output on a high

Meanwhile construction continues apace, with output hitting a seven-month high in September, led by the fastest rise in residential activity for a year. The Markit/CIPS Construction Purchasing Managers Index showed that the residential, commercial and civil engineering sectors all rebounded in September following a dip in August. This was the fastest recorded growth since February, with the residential market performing best of all.

Forecasters are feeling cautiously optimistic however. Infrastructure is expected to hit a record high in 2019 but, as Construction News reported at the end of September, question marks still loom over the future of major projects and government policy. Speaking to consultancy Leading Edge, it reports that this year’s estimated output growth of 1.6 per cent may seem low, considering the glut of work in the industry, but is more a reflection of 2014’s boom in work – output grew by 9.5 per cent last year. Growth in housing, commercial and infrastructure are all likely to grow in the near term, although housing is unlikely to see double-digit growth in the next four years even though it will remain a vital sector for new work growth.