Construction growth hits eight-month low

Published:  03 November, 2010

LONDON: Figures for construction industry growth hit an eight-month low. The latest Markit/CIPS Purchasing Managers' Index (PMI) survey – where a reading above 50 indicates growth – fell from 53.8 in September to 51.6 in October. The market had expected a more modest fall to 53.

The construction industry has been a major factor behind the UK's economic growth this year: although construction only accounts for 6.3% of GDP, it was responsible for half of the 1.2% GDP growth in the second quarter and a quarter of the 0.8% GDP growth in the third quarter.

Government spending cuts have undermined its confidence and there are fears that the sector will not provide the same boost to Britain's economic recovery in the current quarter, the report said.

Sarah Ledger, Markit economist and report author, said: "While the UK construction sector managed to record growth in October, it seems more evident that the current expansion has peaked. Looking ahead therefore, it may be reasonable to assume that construction will have less of a positive impact on GDP compared to Q3."

Sign Up

For the Builders' Merchants News enewsletter.

In the spotlight


Builders Merchants Vacancies – UK Wide

At Arco, we are an industry specific recruitment consultancy, providing sales and managerial staff Nationwide to Merchants, Distributors and Manufacturers of Building Materials within the Construction Sales Sector. Priding ourselves on our unparalleled customer service and hard work, we offer a fresh, innovative and personal approach to recruitment specifically designed to meet our clients’ needs and candidates’ skills.

Guest Blog by Simon Damp

Is DIY a lost art?

As time goes by, the art of do-it-yourself when it comes to activities around the home and garden is fast becoming more and more of a lost art.