Uk construction grows at slowest for 17 months

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Has construction stated to grow slower becuase of the traditional  winter slumpacording to new figures the UK’s construction sector grew at its slowest pace for 17 months in December but remains robust thanks to continued growth in housebuilding, a survey has found.

The managers puchasing index Markit fell to 57.6 from 59.4 a month earlier the index remains above the 50-mark which indicates growth in the sector.

Good strong growth in housebuilding continued to drive construction activity, but has slowed to its slowest pace since June 2013.

The survey said anecdotal evidence pointed to strong demand for new residential development and a further recovery in construction firms bidding for commercial projects.

Markit has also reported signs that wages might be starting to rise in the sector, with rates paid to subcontractors increasing.

Some economists are forecasting that after several years of falling real wages, 2015 might bring the first year that the UK sees widespread increases in pay for the construction industry.

Tim Moore, senior economist at Markit, commented: “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.”