Construction Growth Weakens During November in UK
According to a BBC article recently, a survey suggests that after a surprise lead in October, November has seen the growth within the building sector, fall back in the UK.
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The Markit/Cips Construction Purchasing Managers Index is based on a monthly survey of building firms, which indicates that it fell from 53.9 down to 52.3 in October. Any value which is above 50 within the survey does indicate growth but it’s unfortunate that things have started to slow down.
However, on a more positive note to counter-act this statement, November did see a rise in new contracts with its first increase within residential construction, for six months to which Markit described the growth as modest due to economic head-winds in the industry.
Chief Executive at the Chartered Institute of Purchasing and Supply, David Noble said “Raw materials, energy and fuel prices continue to hinder the sector, construction companies cite these as the main contributing factors for high input prices which have increased for the 22nd month running.”
Homebuilder Berkeley announced on Friday a 64% rise in pre-tax profits for the six months to the end of October, including an exceptional profit of 30m due to the sale of a subsidiary.
Regardless, the firm said it’s currently operating against a backdrop of uncertainty in the economy and short-term volatility.
Berkeley has welcomed the government’s announcement on Tuesday of measures to boost home-building including a £400m investment to kick start stalled construction projects in England, which I mentioned before in this previous blog post.
Yesterday, Markit/Cips data showed that the UK manufacturing sector shrank at its fastest pace in 18 months.
Anglian Home Improvements, formerly known as Anglian Windows, have been trading since 1966. See our website for more information about our double glazing products.
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