Business

Construction sector sees record hiring

HO U S E B U I L D I N G surged at its fastest pace for more than a decade last month to trigger record hiring in the construction industry, a closely watched survey said yesterday.

The home building market grew at its steepest level since November 2003, driven by strong demand for new housing projects, according to July data from the Markit/ CIPS UK Construction PMI report.

Overall, the index edged down to 62.4, down from 62.6 in June but activity remained well above the 50 level that divides growth from contraction and was above City expectations of 62.

The data showed that construction activity has grown for 15 consecutive months and that hiring in the sector grew at its fastest level since the survey began in April 1997.

Tim Moore, senior economist at Markit, said: "July's figures suggest the UK construction sector is enjoying its strongest cyclical upswing since the global financial crisis, while a new record rise in employment highlights that construction firms are increasingly confident about the sustainability of the upturn."

The report showed that civil engineering activity lifted sharply in July, while commercial construction also rose but at a slower rate than in June.

This data contradicts official Office for National Statistics figures which last month showed that construction output fell by 0.5 per cent in the second quarter of the year. But Mr Moore said this latest report could lead to official GDP data being revised later.

He said: "Overall the survey adds to the view that construction companies have performed impressively so far this summer, which raises the likelihood that the sands of time could wash away the construction weakness seen in the preliminary second quarter GDP release."

Business

Today's horoscope

Horoscope


See a different horoscope: