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Resilient construction data

8 November 2021

Resilient construction data

Construction industry survey data for October suggests that activity has remained resilient despite supply chain difficulties and inflationary pressures. 

The Purchasing Managers’ Index (PMI) survey compiled by IHS Markit for the Chartered Institute of Procurement & Supply showed that business gained speed across the sector, but growth remained much softer than the 24-year high seen in June. 

The headline seasonally adjusted index registered 54.6 in October, up from 52.6 in September, to signal a robust and accelerated rise in output volumes. This figure has been above the 50.0 no-change value in each of the past nine months and hit a peak of 66.3 in June.

House building (index at 55.4) replaced commercial work (55.2) as the best-performing category of construction work in October. The latest increase in residential work was the strongest for three months. 

New order growth was unchanged from September's eight-month low and much weaker than seen on average during the summer, say the report authors. 

More than half of the survey panel (54%) reported longer delivery times among suppliers in October, while only 2% saw an improvement. Delays were overwhelmingly linked to haulage driver shortages and international shipping congestion. 

Around 73% reported an increase in purchase prices in October, which was attributed to rising energy and commodity prices as well as raw material shortages and a lack of transport availability.

The near-term outlook for construction growth remained positive in October. Just over half (52%) of those surveyed forecast an increase in output during the year ahead, while only 8% expect a decline. 

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