Britain’s “blistering” builders roared ahead again in August, with firms reporting their fastest rate of growth in seven months, according to the latest survey snapshot of the sector.
The Markit/CIPS Purchasing Managers’ Index accelerated to 64 last month, well above the 50 mark that separates growth from contraction and outstripping analysts’ expectations of a 61.4 reading.
The surge in activity was broad based with all three main sectors of housing, commercial and civil engineering reporting stronger growth in the month.
Confidence in the sector was also strong, with 59% of respondents expecting a rise in activity over the year ahead, while just 7% thought it would decline.
“The resurgence in construction has entrenched itself after a summer of blistering growth,” said David Noble, chief executive officer of CIPS.
However, Noble also warned that skills shortages in the industry would create a headache. “The sector is struggling to find enough skilled tradesmen to keep pace with new work and the labour market will continue to put pressure on costs,” he said.
Delivery times from vendors in August widened to the greatest degree since the survey began 17 years ago, in a further sign of growing strain on supply capacity.
However, official data for the second quarter showed flat output from the construction sector.
