The Chartered Institute of Purchasing and Supply (CIPS) recently reported that the construction industry has shown a marginal increase in recovery. The Purchasing Managers Index (PMI) saw an increase of 0.1 points in December from the previous month.
The current PMI figure sits at 47.1 points – which signifies that the construction industry is still contracting. Ideally the PMI figure should be in excess of 50 points, which indicates an expanding economy.
Despite the PMI index’s low score there are indications that the construction industry will continue to see improvements over 2010.
According to David Noble, Chief Executive of CIPS has said that there are glimmers of hope in the construction industry. Noble said that the residential sector has shown signs of improvement in activity, with continued growth indicated over four successive months.
Regardless of this statement, Noble also added that contractors are still competing aggressively to secure the very few contract tenders that are actually in the market.
In addition to welcome news that the residential construction sector is improving, the Travelodge hotel chain are planning expansion over 2010. The budget hotel chain plans to build an additional 26 new hotels across the UK. As a result this is highly likely to create hundreds of new jobs in the construction industry.
The Chief Executive of Travelodge, Grant Hearn, has stated that with the new builds the company will own in excess of 400 properties throughout the UK. Mr Hearn has also pledged that the company will continue its policy of recruiting staff members who have been unemployed for long periods of time.
This is obviously very good news for the UK as a whole as the construction and manufacturing industries are areas that have suffered the most and, as a consequence, have had very adverse affects on our economy.
I believe that a return to economic stability is a way off yet, however, with signs of improvement in construction and manufacturing 2010 might just see us out of the recession.