Construction pipeline remains 'incredibly strong' for Welshpool firm
The MD at a successful Welshpool firm believes there is cause for optimism for construction after reports the industry grew at the fastest rate for more than a year.
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The latest S&P Global construction purchasing managers’ index (PMI) scored 53.0 in April, up from 50.2 in March, and the highest level since February2023.
It also surged past the expectations of analysts who had predicted a score of 50.4 for the month.
Any reading above the 50.0 threshold indicates that activity in the industry is increasing, while anything below means it is shrinking.
Commercial and civil engineering work – which includes building offices and warehouses, and bigger projects such as railways, airports and stadiums – was the prominent driver of growth in April with new work increasing for the third month running.
Firms said they were seeing greater demand from customers who were feeling more confident about economic conditions improving.
The figures suggested housebuilding has consistently weighed on activity with firms feeling the knock-on effects of higher interest rates leading to weaker demand in the property market. This remained the case in April with residential housebuilding continuing to fall and construction firms seeing sluggish conditions thanks to borrowing costs remaining elevated.
But Mike Sambrook, MD at SJ Roberts Construction, said: “Our construction pipeline remains incredibly strong across a wide range of projects in all sectors.
“However, in contrast to the figures released by S&P Global, we’re continuing to witness buoyancy in the housing market as well.
"At SJ Roberts Construction, we’re actively delivering new housing for clients across both the social and private sales markets.
"Meanwhile at Allscott Meads, our own award-winning development, homes are continuing to sell at an impressive rate and demand remains high amongst a diverse range of purchasers.”
