Construction Purchasing Managers' index shows a fall in rate of expansion in September, although market is optimistic about future growth
The overall performance of the construction economy dipped in September according to the latest Construction Purchasing Managers’ Index.
The index fell from 54.5 to 53.6 indicating a weaker the rate of expansion than in August. However the market remains upbeat about the industry’s prospects. The Future Business Activity Index reached a five month high at 75.7.
The Civil Engineering Index fell to 47.0, indicating the first fall in work on civil engineering projects since June.
Roy Ayliffe, director of Professional Practice at the Chartered Institute of Purchasing and Supply, said: “In September, purchasing managers saw continuing growth in UK construction activity, with increased work on commercial projects being a key driver. However, despite a weakening on Augusts' performance, purchasing managers remain optimistic for the future. Many expect the construction activity to rise in the next year.
"The rate of input price inflation facing UK construction companies remains strong. Higher levels of purchasing combined with insufficient stock holdings once again led to average lead-times lengthening.”