The data supports what I’m hearing every day: the sector is stabilising.
PMI Data suggests a continuation of the decline in Construction Sector output. But, high workloads, easing Cost Inflation and the continued positive performance of the Commercial Segment mean the Sector remains upbeat about Q4 performance.
The September construction PMI data shows that the brakes are still on in the construction sector with growth having now slowed for a full Quarter – currently at the weakest speed of recovery since January of this year. It’s not difficult to identify rising materials prices, continued supply chain instability and the shortage of subcontractors as being primarily responsible for this choke on growth in output.
The market appears to have factored in the continuing impact of these headwinds, however, seeing the rate of cost inflation falling back further from its June peak and experiencing continuing high workloads. This has resulted in a strong rise in employment numbers across the construction sector with the commercial segment leading the field in growth.
The data supports what I’m hearing every day: the sector is stabilising. More than half the contributors to the Markit survey for September were very positive in their expectations, suggesting a more optimistic Q4 of this calendar year.
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