United Kingdom

Details

  • Industry: Infrastructure, Building and Construction
  • Date: 02/05/2012

Construction output and new work up but tread with caution, says KPMG 

The Markit/CIPS Construction Purchasing Managers' Index (PMI) eased to 55.8 from the previous month's 21-month high of 56.7, still well above the 50 level which separates growth from contraction and beating forecasts for a fall to 54.0.


Richard Lyle, director at KPMG, comments on the Markit/CIPS Construction Purchasing Managers' Index (PMI):

 

“It’s encouraging news that the index again shows growth this month, particularly following rather disappointing figures from the Office for National Statistics.  It is also reassuring that there is an increase in confidence albeit from a low base.

 

“However, it is worrying that sub-contractor rates went down, possibly due to increased competition.  This part of the supply-chain is under considerable pressure and possibly shows that although orders are up they are not replacing the large infrastructure projects, which are coming to completion. 

 

“Construction business leaders are going to have to tread with caution and carefully manage their businesses over the short term while the work from the recent increase in orders filters through.

 

“Input price inflation is also concerning and it is good to see that the rate of inflation is not as fast as in previous months.  Margins for construction businesses are at an all time low and any easing of inflation will add to the confidence in the market and give a boost to the sector.

 

“Overall the market is tough and any signs of increased activity should be welcomed.”
 
Ends

 

For further information please contact:
Arti Mohan, Corporate Communications
Tel: 020 7694 8735
Mobile: 07768 858 085
Email: arti.mohan@kpmg.co.uk

 

KPMG Press Office: 020 7694 8773

 

About KPMG
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff.  The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.