Government unveils construction strategy

The latest Markit/CIPS construction figures have shown more positives for the UK industry, with growth achieved for the second consecutive month.

According to the Purchasing Managers Index (PMI), a small growth from the 50.8 recorded in May was experienced in June, reaching 51.0 for the month. The figures recorded last year were the highest since May 2012 and show that growth is still progressing throughout the UK industry.

Once again it was residential construction activity that provided a major boost to the overall figures. Rate of growth was at the strongest level since last year but did experience a slowing from 54.4 to 51.5 on the PMI.

Housebuilding is one particularly strong area of government focus for construction, with a number of incentive schemes available for improved house building activity.

However, improvements were also seen in both the commercial and the civil engineering sectors, with the former achieving a PMI score of 50.1 and the latter achieving a rating of 50. This follows months of contraction in these particular areas. Any rating which is 50 and above on the PMI indicates growth.

Tim Moore, senior economist at Markit, said: "The improvement in overall construction output simultaneously raises chances of strong second-quarter UK GDP growth, and reduces the likelihood of imminent additional policy stimulus from the Bank of England."

In the first quarter, the 0.3 per cent growth in the industry was described as a drag on the economy, but these new figures suggest the possibility of a stronger second quarter for the UK.

People looking for jobs in the construction industry can also gain heart from the figures, with employment in the sector also on the rise. This is the first time this has occurred since February and job creation is rising at the fastest rate since September 2012.

Those in the market for a new construction jobs would be advised to examine the possibilities as soon as possible to capitalise on this wave of positivity.