Fastest rise in Construction output since October 2015

Some fascinating news coming from the UK Construction PMI today, with findings showing the fastest rise in construction output since October 2015.

UK construction companies signalled a sharp and accelerated expansion of business activity during July, led by another strong increase in house building. New orders also picked up for the second month running, with survey respondents commenting on a boost to sales from easing lockdown measures and the restart of work on site. However, the speed of recovery was insufficient to prevent additional cuts to employment numbers across the construction sector and the rate of job shedding was faster than in June. 

Our comment for Yahoo Finance:

The jump in UK Construction PMI is a really welcome confirmation of the trend we have been experiencing at Powered Now – the building sector is back!

This is great news. It means that this important sector is doing its part in the recovery from Covid-19. The whole industry is still in catch up mode and projects delayed by the lockdown are taking priority. This has helped to spike demand and we expect it to continue in the short term.

Our SME customers are also talking about the pressure to complete jobs as people worry about a second wave. Supply chains have improved but we are hearing that larger firms are using their buying power to stockpile materials. This can deprive SMEs but we expect it to only be a short term problem.

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