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August 2011 | Adam Leach
Activity
in the UK construction sector grew again in July, with the rate of growth
remaining broadly unchanged from June.
The Markit/CIPS Construction Purchasing Managers’ Index (PMI) reported a figure of 53.5 for the
month, a very slightly weaker performance than June’s figure of 53.6. A score
above 50 indicates growth.
The
report also found continued growth in the number of new business orders, again
at roughly the same rate as the previous month’s PMI. On a less positive note,
employment fell for the second month running. Despite increasing slightly,
confidence across the UK construction sector remained at a historically weak
level.
“Concerns
over the stability of growth going forward, for private as well as public
sector firms, are likely to hinder spending on construction projects and,
ultimately, the expansion of the sector,” warned Markit economist and PMI
author Sarah Bingham.
Commenting
on the report, CIPS chief executive
David Noble said: “It’s a case of ‘as you were’ for the UK construction sector
this month with little change in the rate of activity growth since June.
“While
the sector is battling against poor economic sentiment, high inflation and
continued worries in the Eurozone, the sustained growth, albeit at a
historically mild pace, has to be seen as a positive, especially compared to
the fallback in the manufacturing sector.”
Yesterday’s
Manufacturing PMI reported
the first decline in activity for the sector in two years as the rate dropped
below the critical 50 mark to come in at 49.1.
