Construction sector shows signs of revival
Despite Britain being bitten by recession and many industries struggling for progress, the construction sector has surreptitiously returned to growth.
The Markit/CIPS Construction Purchasing Managers’ Index rose to 50.8 in may, from 49.4 the month before, while the survey also found that house building in May was at its fastest pace for 26 months.
The government announced measures in March 2013, such as Help to Buy, to support people looking to buy their first home and to spur construction of new properties.
David Noble, CIPS (Chartered Institute of Purchasing and Supply) chief executive, said: “ The construction sector seems to have turned a corner after six dismal months“.
The construction revival has precipitated the increased demand for heavy construction equipment, such as dumpers, loadalls and excavators.
JCB recorded strong profits last year of £365m on a turnover of £2.7bn, and is optimistic for the year ahead.
Scot JCB Holdings, who sell new and used JCB machines, has seen demand rise as a consequence of several large projects.
The company is benefiting from a surge in investment in wind farms across Scotland, abetting increased requirement for items like the eponymous yellow excavator.
It is also enjoying strong demand for equipment for use in infrastructure projects like road building and for facilities connected with the Glasgow Commonwealth Games 2014.
Tim Moore, senior economist at Markit, said the construction sector appeared to have profited from a catch up in work after a disruption caused by cold weather earlier in the year.
The signs of a slow recovery in construction mirrored a similar trend for the British manufacturing sector.
This was posted in Bdaily's Members' News section by Graham Vincent .
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