3 January 2001, 12:50 Expansion of the UK construction industry accelerated in December
LONDON (MktNews) - Expansion of the UK construction industry
accelerated in December and optimism over prospects for the next twelve
months reached its highest level since June 1999, according to a survey
published Wednesday by the Chartered Institute of Purchasing and Supply
and BuildOnline.
The survey's seasonally adjusted index for overall activity in the
construction sector posted 55.5 in December, after 54.3 in November.
Roy Ayliffe, director of professional practice at CIPS, commented
"Purchasing managers had to raise their levels of activity in December
in order to meet rising levels of new orders. Optimism is high as
current levels are expected to continue throughout 2001."
Order books grew strongly with the pace of growth reaching its
highest level since July. The index rose to 61.0 in December compared
with 59.3 in November. Firms believed this was due to the general
buoyancy of the construction sector, with orders particularly strong
from the telecommunications, utilities and health sectors.
Price pressures remained strong but weakened slightly from
November. The prices index posted 63.9 in December, after 65.9 in
November and the lowest level since June. Firms cited the high price of
oil and widespread shortages of raw materials.
Employment continued to rise in December, in line with increased
activity levels. The index rose to 55.5 from 55.2 in November.
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