Jobs boom in construction as housebuilding drives growth

Housebuilding rose at the strongest pace in a year in September in a "decisive momentum shift" that helped to push construction output to a seven-month high.

Housebuilding rose at the strongest pace in a year in September in a


Markit's latest survey of the sector showed output rose at a robust pace last month, following several months of slower growth.


Job creation rose to a three-month high, as bigger workloads contributed to a "sharp increase" in staffing levels.


Tim Moore, senior economist at Markit, described the pace of jobs growth as "its most intense cycle of job hiring for at least 15 years".


The Markit/CIPS construction PMI rose to 59.9 in September, following August's reading of 57.3. This is well above economists' expectations of 57.5 and the 50 level that indicates growth.


The increase was driven by a rise in housebuilding, as projects that had been delayed earlier in the year got underway. Markit said a broad-based increase saw commercial construction activity hit a seven-month high while civil engineering activity increased for the fifth straight month.


“Construction firms enjoyed a strong finish to the third quarter of 2015, as a sustained rebound in new development projects continued to have an impact on the ground," said Mr Moore.


“Residential building saw the most decisive momentum shift in September, hitting a one-year high in the process, while commercial development also picked up speed as rising business investment and improving UK economic conditions acted to bolster demand helped by robust pipelines of infrastructure work."


However, Mr Moore said a steady slowdown in new business growth from June’s post-election peak served as "a warning light" flashing in the sector. Markit also said skills shortages also remained a challenge.


Source: The Telegraph



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