Optimism about growth in the building sector is booming, with business confidence at a nine-year high, the results of a survey suggest.
Well over half (57%) of the construction buyers polled as part of the latest construction purchasing managers’ index (PMI) say they are expecting output to increase over the coming 12 months.
Just 3%, meanwhile, think their output will drop, signalling the highest level of confidence seen in the industry since the early part of 2006.
The latest activity reading in the PMI, which is compiled by Markit and the Chartered Institute of Procurement and Supply (CIPS), came in at 57.8.
While this is a drop on the 60.1 score seen in February, it is still far above the 50 level that separates growth from decline.
Since February, the best performing sub-sectors have been housebuilding and commercial construction, while volumes of new business continued to rise strongly in March, the PMI shows.
Most of the managers reporting that their firms’ new orders are rising say they feel it is down to increased demand from their clients and better economic conditions.
The report also suggests that strong demand for building materials has contributed to increased prices.
Tim Moore, Markit’s senior economist and the author of the monthly index, said the growth in construction output has continued at a strong pace in the first part of 2015, adding that confidence about further growth over the coming year is buoyant.
He said: “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.”
In the report, Mr Moore also predicted that there will be a further boost for new business after May’s General Election.
CIPS’ chief executive, David Noble, said that while the construction industry’s strong recovery is continuing, the way is being led by the housing and commercial construction sectors.
He 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.”