Commenting on the latest Markit/CIPS construction purchasing managers’ index (PMI) which revealed that the construction sector returned to growth in September, Kelly Boorman, head of construction at RSM said:
‘It will be a great relief to many in the construction sector that September saw a return to growth. Indeed, the Construction PMI is now well above the seven year low recorded in the immediate aftermath of the referendum, helping to ease fears that the post-referendum shock would be long-lasting.
‘The rebound was particularly marked in the residential sector. No doubt the Government’s announcement yesterday that it is opening a £3bn Home Builders Fund to help build more than 225,000 new homes will help continue this momentum going forward.
‘It is also encouraging to see that new order books are increasing for the first time since April, once again underlining that confidence is returning in the sector despite the downturn in commercial construction activity.
‘There are, however, some clouds on the horizon. The news today that the pound has hit a 31 year low against the US dollar will heighten concerns that the price of imported construction materials will rise even further.’