Buyers in construction are spending more on building supplies and construction materials than they have done in the past nine years.


This increase in confidence has come despite a slight fall in the Markit/CIPS UK Construction PMI index with the outlook for construction for the next 12 months, buoyed by the general election, set to hit its highest level since February 2006.


David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said: “The main takeaway from this month must be the highest levels of confidence seen in the construction sector for almost a decade.


“Though there may be some low-level obstacles still to come, the sector gets the green light as there is evidently belief that the future for the construction sector is a sustainable one.


“The construction sector’s strong recovery took on a gentler, quieter pace, with the housing sector continuing to lead the way a head – but only just, and with the commercial sector a close second.


“A hint of restraint prevented employment levels rising much further .


“Some firms attributed slower momentum to concerns about the looming General Election , but new business still rose at a respectable pace compared to the average over the last few years.


“Strong demand for construction materials was a key development and though major shortages are not yet apparent, there is some evidence that suppliers of construction materials must up their energy levels to quicken delivery times and raise capacity.”

 

Tim Moore, Senior Economist at Markit and author of the Markit/CIPS Construction PMI, said: “UK construction output growth has settled in at a strong pace so far in 2015, although the recovery has lost some of its swagger since last year.

 

“All three main categories of construction activity saw a growth slowdown in March, in part reflecting softer new business gains as some clients delayed spending decisions ahead of the general election.

 

“However, UK construction companies are highly upbeat about their prospects for growth over the course of the next 12 months, helped by improving economic fundamentals, strong order books and a healthy pool of new invitations to tender.”