Activities and new orders slightly down from the previous month, says new report

The construction industry maintained a steady growth in September even though rates of increase for activities and new orders were slightly down from the previous month, according to the latest report by the Chartered Institute of Purchasing and Supply (CIPS).

The seasonally adjusted Purchasing Managers Index (PMI) also indicated that construction firms continued to hire more staff, and input price inflation was the least marked since February.

Roy Ayliffe, director of professional practice at the CIPS, said: “Despite a slight slow in the sectors’ overall rate of activity, purchasing managers reported another positive month for the construction sector.

“Such buoyancy was largely attributed to a further rise in the volume of new orders received, which, in turn, helped boost employment levels for the fifteenth month.”

Growth in the construction sector was strengthened by the successful acquisitions of new contracts in the surveyed period.

The data also indicated that the civil engineering sector experienced the fastest growth within the industry.

Aycliffe added: “Although the construction sector benefited from inflationary levels easing to a seven-month low, shortages of inputs, including the supply of aggregates and timber, continue to increase input prices and place further pressure on the sector.”