It’s a good time to be involved in the British construction industry. Demand soared as a growing number of Britons invested in retail housing, new data released by the Chartered Institute of Purchasing and Supply claims. The construction industry has benefited from its fastest monthly growth since 2010, the new data indicates.
The survey, which was run by the Chartered Institute of Purchasing and Supply and economic data group Markit, looked at the purchasing managers’ index for building services in the UK. The index increased from 51 in June to 57 in July – a level that’s far above the 50 predicted by the group as a baseline indicator of market stability.
July’s rapid monthly growth is the fastest increase on record since June 2010, when residential construction temporarily soared. Industry experts claim that the surge in building indicates a long-term revival of the housing market that could lead Britain back to economic health.
The increase was the sixth in a row, with smaller albeit significant increases in the demand for residential construction also appearing in May and June of this year. A UK housing construction firm now spends more on material than at any time in the past year, and is expanding its workforce at the fastest rate since December 2011.
Despite the fantastic outlook for the construction industry, many material suppliers have been caught off-guard by the sudden building boom. Delivery times are at their longest since 2010 as suppliers of wood, stone, and other building materials expand their operations in order to keep up with the demand.
Economic analysts have approved of the surge in demand for construction, claiming that the construction sector has changed from being a drag on the economy to being one of its fastest-growing sectors. Economists have pointed to a stronger economy as the primary motivator for the increased demand for builders.
