The construction industry in the United Kingdom ended last year on a very robust note. This is according to survey evidence which continues to get data that paints an optimistic picture on the sector. The CIPS purchasing managers’ survey increased to 57.3 in December and had rebounded from a seven month low in November with only 55.3. The readings which are in excess of 50 indicate clearly that the activity is steadily increasing.
This report of optimism in the construction industry is good news to the sector of painting and decorating. There is a parallel improvement in these sectors when the construction industry is doing well.
It was reported that the commercial construction remained to be the strongest performing sub-category. The housing activities also increased solidly although there was a slow growth in during the other year. Hiring has also rebounded with subcontractor usage steadily rising at its fastest pace ever since August 2014. The chief executive for Chartered Institute of Procurement and Supply, David Nobel, commented that the outlook for this year seems to be very strong.
The challenge for the economists who are assessing the health of the sector is that the official data which were gathered painted a far bleaker picture. The official estimate coming from the Office for National Statistics is that the construction industry contracted at least 1.9 percent only during the third quarter of the year. However, since the construction survey data do not clearly have national statistics status, the economists are treating the given data with utmost caution.
In the overall economy of UK, the construction industry accounts for about 6 percent but this was hit very hard by recession. It contracted 17 percent from its peak to its lowest points and still remains below its pre-fall peak. The outlook for 2016 though is quite pleasing in that different infrastructure is now underway and that there have been big flagship projects in the market up for grab.
Although one cannot be truly certain about what would happen ahead, many are hoping and are seeing the bright note this year. For companies like www.fitzhughdecoratorsnorthampton.co.uk who are engaged in painting and decorating, this year could be a year of breakthrough.