{"id":144322,"date":"2024-10-07T12:01:27","date_gmt":"2024-10-07T11:01:27","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=144322"},"modified":"2024-10-08T11:04:14","modified_gmt":"2024-10-08T10:04:14","slug":"october-pmis-show-fastest-upturn-construction-output-two-years","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/october-pmis-show-fastest-upturn-construction-output-two-years\/144322\/","title":{"rendered":"October PMIs show fastest upturn in output in two years"},"content":{"rendered":"

S&P Global’s October PMIs<\/a> are out, providing an insight into construction activity<\/h2>\n

The S&P’s October PMIs reached 57.2, up from 53.6 in August, and above 50.0 for the seventh month running.<\/p>\n

The October PMIs show that construction output has risen the quickest since 2022.<\/p>\n

Strongest growth in 29 months<\/h3>\n

The report shows that not only did construction output see the fastest upturn since 2022, but also new orders<\/a> and business activity have grown at the strongest pace for over two years.<\/p>\n

Rising demand has been attributed to an increased willingness to spend in clients, in response to a positive outlook in the economy ahead of the October budget.<\/p>\n

This reflects a strong upturn in construction activity, and the steepest rate of growth in 29 months. All three sub-sectors that the PMI monitors saw faster rates of output growth, with civil engineering faring the best at 59.0.<\/p>\n

The October PMIs further show that greater workloads have encouraged staff recruitment, which also lead to cost pressures as some firms noted delays in replacing voluntary staff departures.<\/p>\n

Demand for construction materials also increased<\/h3>\n

Demand for construction products and materials grew, with the latest expansion of input buying being the fastest since 2022. Suppliers delivery time also shortened in September, linked to vendors rising stocks.<\/p>\n

The October PMIs also show that overall input prices increased for the ninth month running, the fastest since May 2023, and business activity expectations dropped to the lowest since April, yet remain positive.<\/p>\n

Tim Moore, S&P’s economics director, said: “UK construction companies indicated a decisive improvement in output growth momentum during September, driven by faster upturns across all three major categories of activity.<\/p>\n

“A combination of lower interest rates, domestic economic stability and strong pipelines of infrastructure work have helped to boost order books in recent months.<\/p>\n

“New project starts contributed to a moderate expansion of employment numbers and a faster rise in purchasing activity across the construction sector in September. However, greater demand for raw materials and the pass-through of higher wages by suppliers led to the steepest increase in input costs for 16 months.<\/p>\n

“Business optimism edged down to the lowest since April, but remained much higher than the low point seen last October. Survey respondents cited rising sales enquires since the general election, as well as lower borrowing costs and the potential for stronger house building demand as factors supporting business activity expectations in September.”<\/p>\n

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

S&P Global’s Purchasing Manager’s Index (PMI’s) for October are out, providing an insight into construction activity.<\/p>\n","protected":false},"author":32,"featured_media":144323,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[676,431,974],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-144322","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-construction","9":"tag-plant-equipment-supplies","10":"tag-pmi"},"acf":[],"yoast_head":"\nOctober PMIs show fastest upturn in output in two years<\/title>\n<meta name=\"description\" content=\"S&P Global's Purchasing Manager's Index (October PMIs) are out, 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