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UK Contractors See the Strongest Growth in the Industry in Six Years

UK contractors have signalled the most substantial increase in output across all monitored sub-sectors in the last six years. This is predominantly due to the fastest rise in overall new orders during this period. The latest reading from the bellwether IHS Markit/CIPS UK Construction Total Activity Index stood at 61.7, the most robust construction output growth since September 2014.

This shows that construction activity in the UK has maintained its course to long-term recovery despite supply chains disruptions and price hikes of raw materials due to the COVID-19 pandemic.

UK contractors have signalled the most substantial increase in output across all monitored sub-sectors in the last six years. This is predominantly due to the fastest rise in overall new orders during this period. The latest reading from the bellwether IHS Markit/CIPS UK Construction Total Activity Index stood at 61.7, the most robust construction output growth since September 2014.

This shows that construction activity in the UK has maintained its course to long-term recovery despite supply chains disruptions and price hikes of raw materials due to the COVID-19 pandemic.

Construction Activity Breakdown

Commercial work was the frontrunner for construction output in April with a 62.2 reading, as it coincided with the reopening of the UK economy. However, its growth rate flattened compared to March.

The civil engineering sector experienced its fastest increase in output since 2014 (index at 61.5), with construction contractors citing an increase in workload on significant infrastructure programmes, notably; the contract opportunities from Highways England and HS2.

Although house building saw a slight decline from its recent peak (64.0) in March, its overall output continued to rise in April with 61.2.

It is worth mentioning that the rapid growth in the construction sector has led to price hikes in construction materials. Supply chain disruptions and skill shortages have also contributed to lengthening the delivery of construction projects.

However, despite all the roadblocks, the sustained growth in output in the past few months means that the construction sector remains at the heart of the UK’s economic recovery. What’s more, UK contractors are optimistic about the growth prospects in the industry, with the range of large scale infrastructural projects still in the pipeline. They can also rely on investments from the government and other stakeholders to sustain this momentum and as an impetus for more resilient and innovative building solutions.

About Jerram Falkus

Looking for contractors to help with your construction project? Jerram Falkus is an established family-run construction company that boasts a wealth of experience in the Education, Housing, Heritage and Sport & Leisure, and Healthcare building sectors and would be happy to help.

We believe that the continued growth in output in the construction industry is an encouraging sign for you to launch your projects now. Get in touch with us for more information.

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