Construction Index Rises In November
The construction industry has been given a boost, according to recent results from the IHS Markit / CIPS UK Construction Total Activity Index.
The data showed an increase to 45.3 in November, rising from 44.2 the month before. This represents the highest it has been for four months, the Construction Index reported.
While a score below 50 demonstrates no change, meaning activity is in negative territory, the rate of decline has slowed down since July.
Economics associate director at IHS Markit Tim Moore said this fall in construction output is likely to have been the result of Brexit uncertainty and the upcoming general election, which have “continued to send a chill breeze across the sector”.
He went on to say: “The speed of the downturn in construction work eased a little since October.”
When it came to demand from clients, house-building seemed to be the “most resilient category of construction output in 2019”.
This could be due to the government’s drive to achieve its ambitious target of constructing 300,000 new homes a year by the mid-2020s.
As well as making use of vacant buildings, it is also building on land to create more residential properties and keep up with homebuyer demand.
In addition to companies being cautious about replacing completed contracts in November, the month was also affected by very wet weather, resulting in a drop in construction output across civil engineering, commercial building, and housing activity.
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