Friday, 2 November 2012

UK Construction PMI - October 2012

October's construction PMI kept back up to 50.9, signifying growth in the sector, but reductions in new work and employment suggest we're not in the clear yet.

Last month's PMI did show some positive industry output, up from 49.5 in September, and bettering expect's predictions for 49.1. However, new orders fell for a fifth consecutive month and employment shrank as firms cut jobs at the fastest rate since August 2011.
Of the three broad sectors, only civil engineering saw growth, with the commercial  and residential sectors declining - the later of which proving to be the weakest performing. And to top it all off, sub-contractor usage also declined at a solid pace, for the third consecutive month.

David Noble, CEO of the Chartered Institute of Purchasing & Supply, said: “Despite marginal growth in October, the prospects for the construction sector are bleak as firms prepare for the worst. They are heading into a long, dark winter, by shedding jobs and laying off subcontractors in response to the longest decline in new business since the start of the financial crisis in 2008/2009".