Since the lockdown was lifted, the construction sector has reported a significant jump in business.
Over the month of September, construction activity increased due to a large increase in homebuilding.
New data from the IHS Markit showed construction PMI rising from 54.6 in August to 56.8 for September.
However, despite the growth in new business, jobs are still at risk.
Markit said: “On the employment front, staff numbers continued to fall in September. However, the rate of workforce contraction eased to the slowest for seven months. When explaining job cuts, some panellists mentioned releasing furloughed workers following a restructuring of their operations.”
Since lockdown measures were lifted there has been a boom in the UK’s housing market. Thanks to factors such as cuts to stamp duty and pent-up demand, demand has grown.
Officials have warned that this growth may quickly end as unemployment rates are expected to grow.
Duncan Brock, director of the Chartered Institute of Procurement & Supply, said: “UK construction took off in September, soaring ahead of both the manufacturing and service sectors in terms of output growth and recording the fastest rise in purchasing activity since October 2015.
“Government support schemes are winding down, so the bigger worry remains levels of job creation. With another drop in employment numbers, vacancies were sparse and further redundancy schemes could be on the cards once this pent-up demand for work is satisfied.”
“But for now, builders are stocking up for Brexit and Covid preparations, so purchasing remains strong in spite of longer delivery times and some shortages. Optimism is at a seven-month high, so builders are enjoying this resurgence in activity following the summer lows,” Brock added.
