UK CIPS Oct construction PMI drops to 55.0 vs 56.8 Sept -
Tuesday, November 2, 2004 9:13:24 AM
afxpress.com
(Updating to add sector breakdown)
LONDON (AFX) - Activity in the UK construction sector remained strong in October, with the purchasing manager index for the sector at 55.0, although it fell below September's five-month high of 56.8, the Chartered Institute of Purchasing and Supply said
A reading above 50 indicates an expansion in activity, while a sub-50 figure indicates contraction
The slower rate of growth reflects a slowing in the growth of new orders, as well as delays between the completion of existing contracts and the start of new projects, said Roy Ayliffe, Director of Professional Practice at CIPS
The sub-index for new orders dropped to 57.3 in October from 60.5 in September, but still showed buoyant growth of new orders, which rose for the seventy-second month running in October, CIPS said
The rate of growth in new orders was the least marked since March 2003, however, it said
Moreover, average prices paid for inputs were only slightly lower than September, with soaring global oil prices and rising metal prices, in particular steel still impacting
October's seasonally adjusted input prices index recorded a level of 72.6, from a reading of 73.3 the previous month
UK construction employment remained on an upward trend in October, with the rate of expansion only slightly less marked than September's nine-month high, CIPS said. The employment index stood at 54.7, down from September’s reading of 55.2. Panel firms reported that staffing levels have been increased primarily to help satisfy rising workloads, it said. "Despite the cooling off in growth and a further rise in input price inflation, optimism in the sector remained high, with confidence underpinned by an anticipated improvement in future business activity levels," Ayliffe said
Higher levels of activity were recorded across all three broad areas of construction activity covered by the survey in October although, in each case, the rates of expansion eased slightly compared to a month earlier, CIPS said
The housing activity sub-index dipped to 55.3 from 57.0 in September, while construction activity was at 56.7 compared with 57.6
Meanwhile, civil engineering activity rose for the second month running, although the rate of growth was again "modest", CIPS said |
