At the end of 2015 the trend for both growth and output in construction remained positive. For a summary of the complete year read our blog 2015 Construction market activity: a year in review. Or for a comprehensive review subscribe to our construction round-up and get our eBook: Construction Market Activity 2015 – A Year in Review.
As final construction market data comes in, all signs point to a strong finish for 2015. The Markit/CIPS UK Construction PMI registered 57.8 in December 2015, a marked increase on the 55.3 seen in November 2015, which was a 7 month low. This exceeded the expectations forecast by many economists of a only a slight increase in December. This suggests a strong outlook for construction activity in 2016, with firms also optimistic as improving UK economic conditions continue to boost the demand for commercial projects. In contrast to this Glenigan report that total project starts for the final quarter of 2015 fell by 14%, with the total value declining for the first time since 2009, and only 4 sectors seeing a rise during 2015.
Mirroring the Markit/CIPS results, the latest CBI growth indicator shows economic growth across the private sector increasing from 13% in November to 20% in December 2015. The CBI expect this economic growth to continue at a similar pace in the first 3 months of 2016.
The Nationwide House Price Index reports that in December 2015 house prices increased by 0.8%. Reporting that annual house price growth increased to 4.5%, up from 3.7% in November 2015. The Halifax House Price Index reports that in December 2015 house prices increased by 1.7%, and house prices in the last 3 months (October-December) were 1.6% higher than the preceding 3 months.
Costain, the engineering solutions provider, announced its trading update for the year ended 31 December 2015, they continue to perform well and are on track to deliver full-year results in line with expectations. The Group finished the year with a record level order book of £3.9 billion, compared to £ 3.5 billion at the end of 2014, including over £1.1 billion of revenues secured for 2016.
New eBook: Consrtuction Market Activity 2015 – a year in review
- Construction Market Activity – A Year in Review
- The General Election – It’s Influence on Construction
- Housing – It’s Influence on Construction Growth
- The Skills Challenge
- Sustainable Construction
- Looking Forward to 2016