The current growth period has seen the construction sector PMI rise to its highest level since May 2012, currently registering a high of 51 – with anything above 50 signifying growth.
The construction sector accounts for around 10% of the UK economy, so there are hopes that continued expansion could accelerate the nation’s process of economic recovery. The country experienced a growth rate of just 0.3% in the first quarter of 2013 but analysts are hoping that second-quarter growth figures will prove altogether more positive.
The mini-boom in UK construction has come about thanks to increased demand for residential housing, and while it’s encouraging to experience expansion in the construction sector once more there are fears that the industry is currently over-reliant on domestic construction.
There is every chance that a lull in the domestic housing market will coincide with contraction for the construction sector once more, so UK construction firms are being urged not to count their chickens just yet. The lean times may not be over, so reducing overheads and streamlining processes with the help of construction accounts management software is encouraged.