New Survey Indicates Solid UK Construction Growth

The Latest industry-wide survey of the UK construction sector has indicated continued expansion, with lots of optimistic sentiment and housing construction seeing the strongest growth.

Publishing its August Purchasing Managers Index survey, Standard and Poors (S&P) recorded a reading of 53.3 for the sector. With any reading over 50 denoting growth, this was the sixth month in a row when the sector had expanded, albeit less than July’s impressive reading of 55.3.

Optimism levels were also high, with S&P ascribing this to a combination of an improving economy and the reduced political uncertainty following the general election.

Although commercial construction was the best-performing sub-sector, housing enjoyed the fastest growth in nearly two years. S&P economics director Tim Moore commented that “lower borrowing costs and a gradual recovery in market conditions helped to boost activity.”

Increased Housebuilding activity can be good news for digger dealers as sites have to be cleared and foundations laid for new houses and apartment blocks. But it could be particularly good news in Northern Ireland, as further data indicates that the housing market is hotting up in Ulster faster than anywhere else in the UK.

This finding has emerged from the Halifax House Price Index for August, which indicated that house prices are now at a two-year high across Britain as a whole, with a 4.3 per cent year-on-year increase. However, in Northern Ireland, the rise was 9.8 per cent.

Such a difference indicates that Northern Ireland has a greater shortfall of homes than elsewhere relative to demand, something that could act to bolster the residential construction sector more there than in other regions.

Like the rest of the UK, the property market in Northern Ireland may also heat up more as a result of base rate cuts, with the Bank of England reducing the base rate last month and several banks now offering cheaper mortgage rates.