Latest data published by Markit / CIPS – 4 November 2021
Output growth has increased slightly over the last month, but supply-side problems still persist and that is likely to weigh further on overall performance towards the end of the year and next year. Notably, housing construction replaced commercial work as the best performing category of construction work in October. Markit notes this:
“British construction companies achieved a faster expansion of output volumes in October, despite breaches of severe supply limits and escalating costs. Home construction has shown the most resilience, as signaled by the fastest growth of residential work over three months.
“However, the volatile price and supply environment added to trade uncertainty and continued to hamper contract negotiations. As a result, the overall rate of new order growth was unchanged from the eight-month low seen in September.
“There have been widespread reports that a shortage of materials and personnel has disrupted work on site, while rising fuel and energy prices have added pressure to costs. However, the worst phase of the supply spill may have passed as the number of construction companies citing a supplier. fell to 54% in October, down from 63% in September. Similarly, reports of rising purchase costs continued to fall from the record highs seen this summer. “
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