blog header image

Posted : 04 Feb 2021 at 17:02:49
Category: News

Share this article

Construction output shrank in January, signalling the first reduction in activity in seven months.

According to the latest CIPS/IHS Markit PMI data, there was a marginal decline in UK construction output, as well as a slowdown in new order growth which fell to its weakest since last June.

There was the first reduction in activity since May last year

At 49.2 in January, down from 54.6 in December, the headline seasonally adjusted IHS Markit/CIPS UK construction total activity index signalled a decline in overall construction output.

This was the first time it dipped below the 50.0 no-change mark since last May.

The report said construction companies surveyed often noted that the third national lockdown and concerns about the near-term economic outlook had led to greater hesitancy among clients, especially for new commercial projects.

The renewed fall in commercial activity, which fell to 46.2 from 51.2, and another drop in work on civil engineering projects, from 48.0 to 45.0, stood in contrast with strong growth in the residential category, which recorded a score of 57.1.

Despite this, the latest increase in housebuilding was the slowest since the rebound began in June last year. In December, it posted an index figure of 61.9.

There were also reports of a “severe” downturn in material supplier performance in January due to transport shortages and delays.

According to the report, around 45% of the survey panel reported longer lead times for the delivery of construction inputs, while only 1% noted an improvement.

Mark Robinson, group chief executive at Scape, said: “Global trade and border control issues continue to test contractors in terms of material supplies while the ongoing impact of the new variants of covid mean sites are facing greater challenges around absenteeism and productivity.

“All of this is naturally dampening some of the relative optimism we saw last year, and the pace at which the industry is able to drive the UK’s economic recovery.”

The data said construction companies had continued to experience intense cost pressures, driven by rising prices for plaster, steel and timber.

 

Original source; https://www.building.co.uk/news/lockdown-uncertainty-sees-january-output-drop/5110223.article 

SIMILAR NEWS

blog header image
NEWS
CONSTRUCTION GROWTH SLOWS AS COSTS “GO THROUGH THE ROOF”

The pace of construction growth slowed in August as buyers reported near record rises in input cost inflation.       The bellwether IHS Markit/CIPS UK Construction PMI Total Activ ...

blog header image
NEWS
SUBCONTRACTORS HIT OUT AT HMRC OVER SLOW VAT REPAYMENTS

Specialist contractors have hit out at HMRC over the time it takes to reclaim VAT payments following a controversial change in the tax regime earlier this year. The “domestic reverse charge&rd ...

blog header image
NEWS
LABOUR COSTS ‘BREAK RECORDS’ AS VACANCIES SOAR

Recruiters have reported “record-breaking” increases in labour costs as new data shows vacancies hitting fresh highs. Between May and July, there were 38,000 vacancies in the construction ...

blog header image
NEWS
TIMBER SHORTAGE DUE TO 'UNPRECEDENTED' POST-LOCKDOWN DEMAND

The price of timber has risen sharply with builders struggling to get supplies, as post-lockdown construction and DIY projects create huge demand. The Timber Trade Federation (TTF) said supplier ...

blog header image
NEWS
UK CONSTRUCTION FACES ‘PERFECT STORM’ AS SUPPLY SHORTAGES LOOM

UK construction is facing a “perfect storm” of growing skills and materials shortages as demand for building reaches record levels driven by home improvements, the housing market and new i ...

blog header image
NEWS
DEMAND FOR CONSTRUCTION WORKERS CLOSE TO 20 YEAR HIGH

The staff shortage in construction is continuing to bite, with 33,000 job vacancies for the period of April to June according to the latest figures from the Office for National Statistics. It is the s ...

business-directory Business Directory
smartbusinessdirectory Payroll Services Business Directory
truebusinessdirectory payroll-services Directory
payroll-services Directory