News on 04 October 2000
BuildOnline, working in conjunction with the Chartered Institute
of Purchasing & Supply, has carried out a survey of the UK construction
industry which shows a further increase in the overall levels of activity
in September, with the pace of growth rising to a three-month high.
The Total Construction Activity Index (an indicator designed to provide
a measure of business conditions) registered 59.9 in September, compared
with 58.0 in August.
The commercial construction sector recorded strong expansion in September,
with growth accelerating to the fastest pace for three months. The seasonally-adjusted
Commercial Activity Index registered 60.2 in September, up from 59.2 in
August, as construction firms’ commercial activity expanded for the
twenty-first successive month.
The latest surge in world oil prices combined with shortages of a wide
range of construction materials appears to be linked to a significant
increase in input prices in September. The seasonally-adjusted Prices
Index recorded 71.8 in September compared with 68.2 in August. The rate
of input price inflation accelerated to the highest level since March’s
survey peak.
Employment
levels within the UK construction sector increased for the eighteenth
consecutive month in September, although the pace of growth of recruitment
eased significantly, dropping well below the recent peak seen in July
to record the slowest rate since last November. Panel members’ use
of sub-contractors also increased during the month, even though the overall
quality and availability were again reported to have deteriorated.
BuildOnline President Brian Moran says: "The report on construction
for September gives varied signals - optimism resulting from the highest
growth in construction activity for three months is tempered by continued
cooling of housing market activity, and yet further rises in input prices."
