As final construction market data comes in, all signs point to a strong finish for 2015. The Markit/CIPS UK Construction PMI registered 57.8 in December 2015, a marked increase on the 55.3 seen in November 2015, which was a 7 month low.
This exceeded the expectations forecast by many economists of a only a slight increase in December. This suggests a strong outlook for construction activity in 2016, with firms also optimistic as improving UK economic conditions continue to boost the demand for commercial projects.
UK Construction PMI - December: 57.8
Mirroring the Markit/CIPS results, the latest CBI growth indicator shows economic growth across the private sector increasing from 13% in November to 20% in December 2015. The CBI expect this economic growth to continue at a similar pace in the first 3 months of 2016.
The Nationwide House Price Index reports that in December 2015 house prices increased by 0.8%. Reporting that annual house price growth increased to 4.5%, up from 3.7% in November 2015. The Halifax House Price Index reports that in December 2015 house prices increased by 1.7%, and house prices in the last 3 months (October-December) were 1.6% higher than the preceding 3 months.
Source: Competitive Advantage Consultancy Ltd