Employment in SME firms hits four-year high

Employment in the SME construction sector is at the highest for four years according to a new survey.

Employment levels rose as a consequence of rising activity in the construction sector at the end of 2004. The PKF SME Index recorded an employment level of 56.1, where scores above 50 indicate a rise above the previous quarter, well above the SME average of 51.7.

The fourth quarter of 2004 was the best of the year according to the quarterly survey of firms in the manufacturing, construction and service sectors. Output was recorded at 59.3, where the average is 54.5.

On the downside the input costs for the construction sector rose steeply to 76.0, the second highest figure ever recorded.

The SME Construction sector appears to be steaming ahead with yet another encouraging set of performance figures.

David Mellor, partner at PKF

David Mellor, partner at management and financial consultant PKF, said: “The construction sector appears to be steaming ahead with yet another encouraging set of performance figures.”

“Although there is evidence house prices are cooling slightly, the ever-increasing demand across the UK for affordable housing may well sustain the sector’s growth in the longer term.”