Defence Contractors UK Benefit From Regional Housing Expansion
In what is sure to come as a huge boost for defence contractors UK based and otherwise, it has been announced that countrywide growth is at a seven month high throughout the construction sector.
August saw a great upturn in fortune for industry professionals according to the Markit/CIPS construction Purchasing Managers’ Index (PMI). Many doomsayers predicted that there would be a further fall for the field but with a markup from 62.4 to 64, they have been gladly proven wrong.
Despite the recession, this is the 16th month in a row that these figures have been above the 50 point threshold which indicates growth, despite some vendors reporting slow delivery times. In fact, the rise is causing issues with suppliers who are struggling to meet demand.
“The sector is struggling to find enough skilled tradesmen to keep pace with new work and the labour market will continue to put pressure on costs until the next wave of apprentices begin to enter the jobs market,” said David Noble, group chief executive at the Chartered Institute of Purchasing & Supply.
It is believed that the sector has become recession proof over the last two years thanks to government schemes and low interest rates which appeal to first-time buyers. It also hasn’t helped that the economy itself has been steadily recovering since the downturn and is now back on a stable keel.
However, some corners suggest that because of such success, interest rates could return to their inflated values.
Howard Archer, chief European and UK economist at IHS Global Insight: “We now think it is most likely that the Bank of England will hold fire until the early months of 2015 given low inflation, still very weak earnings and the downside risks to growth coming from heightened geopolitical tensions and stuttering eurozone economic activity, but there is still a genuine possibility that the MPC could act this year.”
Although housing increases were reported most prominently, construction all across the country has seen a rise in demand. Jennings Builders and Civil Engineers are a company whose services have hardly been out demand during recent times. You can find them on their website, call 01492 514006 or email reception@jenningsbce.co.uk.
