Construction activity grows in October

The UK construction sector recorded further strong growth of total industry activity in October, according to the latest Construction Purchasing Managers’ Index, published today (Tuesday).

The seasonally adjusted index designed to measure the overall health of the construction economy recorded a 55.0, remaining above the no change mark of 50.0 that divides growth from contraction for the 69th successive month.

Roy Ayliffe, director of professional practice at the Chartered Institute of Purchasing and Supply, said:  "Purchasing managers saw further growth across all areas of the construction sector in October, although at a slower rate. This was due to a slowing down in the rate of growth of new orders, as well as delays between the completion of existing contracts and the start of new projects.

"Despite the cooling off in growth and a further rise in input price inflation, optimism in the sector remained high, with confidence underpinned by an anticipated improvement in future business activity levels.”

Higher levels of activity were recorded across all three broad areas of construction activity covered by the survey in October although, in each case, the rates of expansion eased slightly compared to a month earlier.

October’s seasonally adjusted Housing Activity Index recorded 55.3, from a reading of 57.0 in September, while the latest seasonally adjusted Commercial Activity Index posted a level of 56.7 compared with 57.6 the previous month.

Meanwhile, civil engineering activity rose for the second month running, although the rate of growth was again modest.