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

indicator, showed its lowest increase in output since the Summer of 2013.
The poorest performing sector however was civil engineering which actually

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

firms remain positive in this part of the industry for 2015.

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…