Executive Briefings

Supply Chain Concerns Slow Construction in United Kingdom, Report Claims

The UK construction sector expanded at its slowest pace for 17 months in December against a background of concerns around supply chain pressures and skills shortages, according to a survey of buyers.

Supply Chain Concerns Slow Construction in United Kingdom, Report Claims

The Markit/CIPS UK Construction Purchasing Managers’ Index posted 57.6 in December, down from 59.4 in November, but still above the long-term average (54.5) and the no-change position of 50.

Residential house building was the strongest performing sub-category, while civil engineering slipped into contraction for the first time in 17 months.

The rate of staff recruitment was above average in December but a number of firms reported worsening skills shortages, reflected in decreased subcontractor availability and increased pay for them.

More than half of firms predicted a rise in business activity during 2015, against 13 per cent who forecast a reduction, but uncertainty over this year's general election weighed on confidence.

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The Markit/CIPS UK Construction Purchasing Managers’ Index posted 57.6 in December, down from 59.4 in November, but still above the long-term average (54.5) and the no-change position of 50.

Residential house building was the strongest performing sub-category, while civil engineering slipped into contraction for the first time in 17 months.

The rate of staff recruitment was above average in December but a number of firms reported worsening skills shortages, reflected in decreased subcontractor availability and increased pay for them.

More than half of firms predicted a rise in business activity during 2015, against 13 per cent who forecast a reduction, but uncertainty over this year's general election weighed on confidence.

Read Full Article

Supply Chain Concerns Slow Construction in United Kingdom, Report Claims