Published By : 05 Oct 2015 | Published By : QYRESEARCH
The construction industry has observed a good recovery over the third quarter of this year in the UK. Analysts say that construction companies in the UK saw a strong end to the third quarter of the year, as a continuous rebound in new construction projects continued to benefit the construction sector of the country.
The UK construction sector showcased even more improved performance in the month of September as the sectors of residential buildings advanced to a twelve-month high and job creation surged the most in the past three months duration.
At the same time, record-low interest rates and improving European economy also helped in boosting the overall growth in construction activities. The economic indicator Markit Economics stated that their headline estimate for the UK construction sector increased to 59.9 points in the month of September, up from 57.3 in the month of August. Other indicators also outshined market’s expectations of the UK construction sector in the third quarter of the year.
This data adds to the evidence that the real-estate market in the UK is strengthening, after the prices of houses reached record high and the rates of mortgage surged. However, even as the construction companies in the UK indicated that the number of construction projects was on a constant rise and increased at a robust pace in the month of September, it is being observed that the latest rise was also the slowest in the five months duration and also much weaker than the rise observed in the post crisis period of 2013 and 2014.
Meanwhile, the deterioration in supplier performance was also observed to the least in almost the past five years’ duration, which is linked by some firms as a chance of greater stocks at the vendors’ side.