Builders boom again as orders rise at fastest rate in over a year

THE “brakes are off” for UK builders after June saw the strongest rise in new orders for more than a year, industry watchers declared today.

The Chartered Institute of Procurement & Supply’s upbeat construction snapshot showed speedier growth from the sector as its activity index moved above the 50 no-change mark from 52.5 to 53.1, a seven-month high. Housebuilding work drove the latest expansion as the industry enjoyed its fastest rise in new orders since May last year, amid rising confidence among clients.

Cips director Duncan Brock said: “It appears the brakes are off for the construction sector.

“Despite being hampered by economic uncertainty, firms reported an improved pipeline of work as clients committed to projects and hesitancy was swept away.”

Firms are hiring at their fastest pace for a year although costs are also rising, Cips said. The survey evidence comes after official construction data was revised up for the first quarter of the year, improving the economy’s overall growth to 0.2%.

Bank of England rate-setter Michael Saunders, a policy hawk, further fuelled speculation of an August interest rate rise with comments to CNBC today that the central bank might need to rise interest rates faster than the market predicts.