An uneven few years for the construction sector looks like finally curtailing as news earlier this month suggested that the output is soaring to its highest figures in several years. Subsidiary companies, such as concrete pumping North Wales, can all look forward to a bright future.
Although not a massive rise on paper, statistics released by Markit’s PMI has sown a healthy rise of 3 points based on October and November’s output. October saw a figure of 59.4 whilst November managed an impressive 62.6: the highest since 2007. The rule of thumb is that anything exceeding 50 on the PMI indicates consistent growth.
There are many things to consider when you take into account this sudden surge; although anyone who’d been studying the situation will know it’s been altogether not sudden. A patient and vested few years have seen austerity creep in. meaning growth has been slow.
The main factor for the gradual change of fortunes is possibly governemtn schemes of late but in fact, analysts point towards mortgages being easier to attain therefore giving any first time buyers the incentive they needed to take the plunge. Now, as quite possibly evidenced by these statistics, the Bank of England has withdrawn its funding so that the sector can once again stand on its own two feet.
With consistent schemes being implemented by the Conservative Party in Briatin, it will be interesting to see if this heralds a new dawn for the construction business and the estate market as a whole.
David Tinsley of BNP Paribas had this to say on the emerging pattern of success: "These survey indicators are suggesting something like a 1% rise in GDP [gross domestic product] in Q4.
"If this sort of pace can be continued into 2014, then the level of UK output will have risen above its pre-crisis peak by next summer."
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