{"id":142807,"date":"2024-08-12T12:06:29","date_gmt":"2024-08-12T11:06:29","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=142807"},"modified":"2024-08-12T12:06:29","modified_gmt":"2024-08-12T11:06:29","slug":"august-pmis-show-fastest-construction-increase-26-months","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/august-pmis-show-fastest-construction-increase-26-months\/142807\/","title":{"rendered":"August PMIs show fastest construction increase in 26 months"},"content":{"rendered":"

The August PMIs are showing that construction activity has increased at a fast pace, with both employment and new orders increasing at the fastest pace in 26 months<\/h2>\n

S&P Global Market Intelligence’s August PMIs reveals that all three construction categories (housing, commercial, and civil engineering) saw activity increase over July, continuing the trend from the last report<\/a>.<\/p>\n

Respondents give credit to a rise in new orders leading to the sharp rise. Civil engineering saw the sharpest growth in over two years.<\/p>\n

August PMIs show an increase in activity but also in demand<\/h3>\n

Despite the increase in employment and activity, the lead times remained largely unchanged.<\/p>\n

This is because the increased activity saw an increased demand, putting more pressure on supply chains.<\/p>\n

This put an end to the 16 month streak of vendor performance improving, and other respondents also reported issues with manufacturing and transportation.<\/p>\n

This also had the effect of seeing costs rise as suppliers raised prices to match demand. The rise in input costs equalled that of January, making it the joint-fastest rise in cost in 14 months.<\/p>\n

However this will not likely be a long term trend, the August PMIs show, as the inflation rate was still below average.<\/p>\n

The growth is also leading to both contractors and clients being hopeful for the future, optimistic that growth and activity will continue.<\/p>\n

S&P<\/a> comment on the report:<\/h3>\n

“The election-related slowdown in growth seen in June proved to be temporary, with the pace of expansion roaring ahead in July. Firms saw the strongest increases in new orders and activity since 2022 as paused projects were released amid reports of improved customer confidence.<\/p>\n

“The strength of demand moved the sector closer to capacity, bringing a recent period of improving supplier performance to an end. There were also signs of inflationary pressures picking up, something that will need to be watched closely if demand strength continues in the months ahead.”<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

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