The latest construction Purchasing Managing Index (PMI) data provides further evidence of weakening construction activity in the UK, according to the Mineral Products Association (MPA). The MPA says the PMI figures released on June 4 follow its own data which indicated that sales of mineral products such as aggregates, asphalt, concrete and mortar declined in the first quarter of 2019. It adds that the latest PMI data, showing a decline in construction output, particularly for civil engineering, illu
The latest construction Purchasing Managing Index (PMI) data provides further evidence of weakening construction activity in the UK, according to the Mineral Products Association (MPA).
The MPA says the PMI figures released on June 4 follow its own data which indicated that sales of mineral products such as aggregates, asphalt, concrete and mortar declined in the first quarter of 2019.
It adds that the latest PMI data, showing a decline in construction output, particularly for civil engineering, illustrates the importance of accelerating delivery of approved infrastructure plans.
The new PMI data found that UK construction companies indicated a renewed decline in total business activity during May. Lower volumes of commercial work and civil engineering activity more than offset a modest increase in house building. New orders also decreased across the construction sector, with survey respondents noting that subdued domestic economic conditions had led to project delays and fewer tender opportunities.
The IHS Markit /CIPS UK Construction PMI is compiled by IHS Markit from responses to questionnaires sent to purchasing managers in a panel of around 150 construction companies.
In its recent Comprehensive Spending Review submission and letter to the Chancellor, the MPA stressed that UK supply chains are still hampered by over-promising and under-delivery of infrastructure projects.
The association says that more reliable, longer-term programmes are needed to ensure the capacities and capabilities are in place to build, improve and maintain our infrastructure. It adds that the only positive construction and PMI data currently is for housing, but MPA evidence of lower mortar sales suggests that relying on new housing to drive overall construction is a risky expectation.
The MPA says these projects are key to supporting jobs in the sector and supply chain, and jobs are now being lost due to the lack of delivery. The industry is also concerned that having invested in new and improved production capacity particularly in asphalt and concrete planned demand is not materialising.
“The falling construction PMIs add to concerns about construction activity highlighted in the MPA’s first quarter data, which showed declines in all products compared with Q4 2018,” said MPA executive director, economics and public affairs, Jerry McLaughlin.
“Unless we see greater urgency on the delivery of planned infrastructure projects there is little prospect of construction contributing positively to GDP over the next two years. The mood music for major infrastructure projects seems to be getting less positive and there is a danger that political distractions are taking Government’s eye off the ball. MPA’s CSR submission calls for a greater focus on infrastructure project and programme delivery and the latest PMIs and other evidence of slowing construction add weight to this issue.”
