The construction sector is boosted after a decline of 17-month low in December. The building firms performed strongly in February after the slowdown hit the construction segment at the end of the last year. The economists say that the growth in the segment is likely to settle down this year.
According to a latest survey by a financial data provider, the resurgence in new orders gave the industry a boost once again. The survey shows that the construction PMI increased from 59.1 in January to 60.1 in February. This will register the highest PMI and fast growth in the industry since October.
These surveys increased the confidence among the clients as well as the output levels to strong workloads.
The chief UK economist at the survey forum said there has been a remarkable strong spell of continuous growth recorded since July 2013. This has been fuelled by growing house building activity among homebuyers and wider economy recovery. Also, since the pace of expansion has cooled down the peaks late last year, the recovery retains have gained stronger momentum. The reinforcing demands in house building and various commercial construction activities have given a modest rise in the civil engineering work too. The growth will cool down this year, added Williamson.
The construction sector will see weaker demands for building projects due to some uncertainties.
In addition, the return of drastic cuts in the public services from April has hit firms to depend on the maintenance work and housing repair works. This will also dampen the activity as compared to the last year. Most of the councils have agreed to the 12% average cuts for 2015 and 2016. This has been agreed after a 6% cut across the board funding cut in the recent financial year.