Housebuilding recovery slows in December
According to the report uncertainty surrounding the general election in May will weigh heavily on confidence when it comes to construction, as there are unanswered questioned on how a potentially new government plans to tackle the deficit.
But the report said that the housebuilding sector was still the strongest performing sub-category of the UK’s construction sector, as according to Markit housebuilders enjoyed their best year since 1997 in 2014.
Tim Moore, senior economist at Markit, said: “A sharp recovery in housebuilding, as well as resurgent demand for commercial development projects, continued to boost staff recruitment and sub-contractor pay rates across the construction sector in December.
“While new business growth moderated to its lowest for a year-and-a-half in December, UK construction firms are still highly upbeat about their prospects for output growth in 2015.”
Four times as many construction companies (52%) anticipate an upturn in output over the year ahead compared to those that expect a reduction (13%), although the balance of firms expecting growth was still the lowest recorded since August 2013.