Construction industry faces bleak winter(11/3/2012)

That��s the conclusion of the latest monthly survey of construction purchasing managers, which showed a tiny amount of industry output but further reductions in new work and employment.

Adjusted for seasonal factors, the October construction purchasing managers�� index (PMI) registered 50.9, up from 49.5 in September, but only fractionally above the 50.0 no-change value.

The survey is conducted by Markit on behalf of the Chartered Institute of Purchasing & Supply (CIPS).

David Noble, chief executive officer of the CIPS, said: ��Despite marginal growth in October, the prospects for the construction sector are bleak as firms prepare for the worst. They are heading into a long, dark winter, by shedding jobs and laying off subcontractors in response to the longest decline in new business since the start of the financial crisis in 2008/2009.

��There is contagion right along the supply chain with rising fuel and energy costs and lengthening delivery times ensuring there is little hope of respite in the immediate future. All of this compounds the imminent threat of budget cuts in 2013.��

The latest reading was much weaker than the average seen in the decade leading up to the global financial crisis in 2008 (56.3), thus highlighting a continuing subdued trend in output across the construction sector.

Higher levels of construction output were confined to civil engineering in October, with the sub-sector registering moderate growth for the second month running. Residential building activity was the weakest performing broad area of construction monitored by the survey, with output declining for the fifth successive month. Commercial activity also dropped in October, but at only a marginal pace.

(Author Mosaic and Tile, China Leiyuan 11/3/2012)

Previous News:
Inkjet tiles will take big market share in the near future(11/2/2012)

Next News:
The Promotion of Wood Look Ceramic Tiles has Come to a Successful Conclusion(11/6/2012)