PMI: Construction activity grows at fastest rate since 2014

08 Apr 2021

Construction output grew at the quickest rate in six and a half years last month.

This was down to a series of delayed projects getting the green light, as well as a boost in construction reinforcing the industry.

IHS Markit’s construction Purchasing Managers Index hit 61.7 in March, a steep rise from February’s reading of 53.3, City AM reports.

The most recent data, which surpassed analyst forecasts of a reading of 54.6, is the most robust rate of growth in construction output since September of 2014.

In terms of housing construction, the survey showed a reading of 64.0, the quickest growth rate since July 2020.

However, strong rises in commercial construction and civil engineering saw highs not seen in seven years.

The readings were defined as “spectacular” by Duncan Brock, group director at the Chartered Institute of Procurement & Supply.

He added: “Construction was full of the joys of spring in March with a sudden leap into solid growth fuelled by across the board rises in workloads in all sectors.

“The commercial pipeline was particularly spectacular giving its best performance since late-2014.”

Following the uptick, the industry also registered the fastest rate of job creation since the end of 2018.

According to Steve Plaskitt from accountancy firm MHA, support for the construction and housebuilding sectors unveiled in last month’s Budget were trailing the figures.

“The spring budget was a boon for both house buyers, who stand to benefit from the extension and phased ending of the Stamp Duty holiday, and house builders, who will hope that the government’s guaranteed support for 95% mortgages until the end of 2022 will drive demand.

“The government’s infrastructure spending, such as the £27 billion earmarked for roadbuilding, is also impressive and will create much needed stimulus for the industry. Collectively these measures will underpin performance in the sector for the months ahead,” he continued.