Could The Construction Bubble Be About To Burst……Again?
Growth in the UK construction industry slowed for the third consecutive
month in December. Despite a further strong performance from the house
building sector, the purchasing managers index from Markit a key industry
contracted for the first time in 17 months. This was believed to be down to
a combination of budget constraints and a skills shortage which saw a slow
down in major infrastructure projects in December.
The buoyancy in house-building ensured that the Markit index rating
remained in a state of growth despite the recent slow down. In fact 2014
saw the best year for housebuilding since the Markit index began in 1997 and
Tim Moore, senior economist at Markit said “While new business growth
moderated to its lowest for a year and a half in December. UK construction
firms are still highly upbeat about their prospects for output growth in 2015”.
On The Tools would like to know your thoughts on the state of play in the
industry for 2015, positive or negative please add your comments below…