Construction industry closes year on optimistic note

Published:  02 February, 2017

Markit, Glenigan
iStock.com/Pashalgnatov

There was an optimistic close to 2016 with two major organisations reporting positive news for the construction industry. The Markit/CIPS UK Construction PMI (purchasing managers’ index) showed growth in new orders hitting an 11-month high in December. And the Glenigan Index reports starts in the final three months of the year being 2% higher than a year earlier.

Markit reported a seasonally adjusted index of 54.2 for December, up from 52.8 in November. The headline index has been above the 50.0 no-change mark for four consecutive months, and the latest reading signalled the fastest pace of expansion since March 2016. Anecdotal evidence suggested that improving order books and a general rebound in business conditions helped to lift construction output in December.

The latest Glenigan Index reports the value of starts on site in the final three months of 2016 being 2% higher than a year earlier. Non-residential project starts were 5% ahead of the same period in 2015, lifted by a sharp rise in hotel and leisure projects, while office and industrial project starts were unchanged on a year earlier.

Residential starts were 5% up on a year earlier, although lower than the preceding three months.

Civil engineering remains a drag on underlying project starts, being 19% down on a year ago.

Allan Wilén, Glenigan’s economics director commented, ‘Overall project starts were 2% lower during 2016 as a whole. However, the latest Glenigan Index data indicate a steadying in market conditions and investor confidence.

‘The stabilisation in industrial and office project starts is especially encouraging. Earlier in the year, both sectors saw project starts fall sharply as investors reviewed the implications of the Brexit vote for their projects’ viability.’



comments powered by Disqus

Search

Welcome

Welcome to Modern Building Services Online, the web edition of Modern Building Services (MBS) journal and the UK's most popular Building Services engineering site. Modern Building Services covers the entire Building Services Engineering industry. This site contains archived content from the journal, plus web-specific content.

When you go to our digital edition, you can also access the archive of digital editions.
October 2017: DIGITAL EDITION
ARCHIVE OF DIGITAL EDITIONS

Modern Building services has a group
on Linkedin - join us!

Show

Jobs

  • Intermediate / Senior Mechanical Engineer

    The Mechanical team undertake the design and specification of a range of Mechanical building services in a lead or supporting role, depending on project complexity and scale. You should demonstrate a flexible approach to design and team working and wil......

  • Senior Urban Designer

     Applicants will be Master’s Degree qualified Architects / Urban Designers, with a strong portfolio of work highlighting a variety of projects at a range of scales and types, with strong focus on regeneration, infrastructure-led projects and major develo......

  • Principal Structural Engineer

    We are currently recruiting on behalf of a global client, with a diverse range of award winning projects to their name. Their experience spans a host of market sectors, including transport, infrastructure, defence, scientific, education, high-tech and ......

more jobs »

Poll

"Is the Building Services industry lagging behind in the implementation of BIM?"



Calendar