Construction sector grows at fastest rate since 2007

Nov 11, 2013 in Uncategorised

The British construction industry has unexpectedly taken a turn for the better, experiencing its fastest growth since the economic crash in September 2007.

The Markit/CIPS construction PMI rose to 59.4 in October, outdoing economists’ predictions of it remaining at Septembers high of 58.9.

According to reports from theguardian.com, the house building market experienced the biggest growth in the construction industry, helping to boost the housing market further.

Economists have said that house building is on the rise mostly due to the government’s Help to Buy scheme, which continues to aid first time buyers to get a foot on the property ladder.

Construction was one of the hardest hit industries by the financial crisis, which began six years ago. As the housing market came to a standstill and the government cut funding for building projects across the country.

Howard Archer, IHS Global Insight economist, told reuters.com that evidence shows the construction sector is continuing to grow. However, those working in the industry need to remember that this sector only accounts for 6.3 per cent of the national output.

Mr Archer said: “Of critical importance to the construction sector going forward is that the economy holds up well over the coming months and that housing market activity sees sustained healthy but not excessive growth.”