Despite fears that growth would be stalled by workers isolating due to Omicron and adverse weather conditions, output in the construction sector increased to 56.3, according to the latest analysis of PMI data carried out by HIS Markit and the CIPS.
The data also showed a healthy growth in work received by construction companies, the fastest since August 2021. This influx of work has seen a rise in the number of new hires in the sector, with January being the best month for job creation since October 2021.
Up by two points on December’s number of 54.3, this figure is also the strongest rate of growth since July 2021 and signifies the twelfth month in a row the sector has recorded figures above the 50.0 no change mark.
Commercial Work Leading the Charge
The survey also suggests that an increased appetite for commercial work played a major part in the growth.
Following the lifting of the government’s Covid-19 restrictions, which called for people to work from home, commercial work experienced a boost, hitting 57.6 - its best score since the summer of 2021.
Since recording a low of 49.1 in December, civil engineering work has also seen progress, climbing to 53.2. Conversely, the homebuilding sector recorded its lowest figure, a 54.3, since September of last year.
Tim Moore, the Director at HIS Markit, said: “The composition of growth has become more tilted towards commercial projects, as house building lost momentum and civil engineering remained subdued.”
Despite this, the survey revealed construction companies largely felt positive about the future. 53% of the survey panel predicted a rise in output throughout 2022, contrasting the 5% that predict a decline.
With increasing amount of work and tender opportunities, optimism in the sector was the strongest since May 2021.
Commercial Work at Quoinstone
The latest numbers presented by HIS Markit and the CIPS survey are very welcome.
We’re extremely encouraged by the growth in the construction sector in general, and it’s particularly pleasing to see commercial work is playing a substantial part in that growth.
At Quoinstone, we have a wealth of experience in the commercial construction sector, both at provider and client level.
This experience gives us a unique insight into the requirements and challenges of building a commercial development and makes us perfectly placed to help you manage and deliver these projects.
We understand that the way we build has changed, and sustainability and innovation are key requirements for the commercial sector.
We’re experienced in working with creative engineers to explore exciting new concepts and ideas and have developed close relationships with leading environmental engineers.
Previous projects we’ve worked on have been awarded a BREEAM (Building Research Establishment Environmental Assessment Method) grading of excellent, and you can browse some of those projects here.
If you have a project you’d like to discuss, you can contact us today by emailing contact@quoinstoneproperty.co.uk, or call us on 01962 435 023.