Construction Purchasing Managers Index (PMI) survey results: May 2020
The construction industry remains upbeat despite record falls in activity and is ready to adjust to a ‘new normal’ as the economy comes out of lockdown, according to the Chartered Institute of Building (CIOB). The Construction Purchasing Managers Index (PMI) survey found steep declines in activity across the sector, although LinkedIn found that confidence among construction industry professionals is still stronger than most.
The IHS Markit’s Construction PMI has found that (86%) of survey respondents reported a reduction in business activity since March 2020, reflecting widespread site closures and shutdowns across the supply chain in response to the public health emergency. Seasonally adjusted IHS Markit/CIPS UK Construction Total Activity Index fell from 39.3 in March 2020 to 8.2 in April 2020, a downturn in overall construction output.
All three main categories of construction work experienced a survey-record fall during April 2020, with declines in house building (7.3) and commercial activity (7.7) exceeding that for civil engineering (14.6). Lower volumes of construction output were almost exclusively attributed to business closures in April 2020, with survey respondents often commenting on complete stoppages of activity on site due to the coronavirus (COVID-19) pandemic. April 2020 data also highlighted a severe impact on construction supply chains, with closures at builders’ merchants and stoppages of manufacturing production leading to widespread supply shortages.
Caroline Gumble, Chief Executive at the CIOB, commented:
“A key factor in our economic recovery is how the government supports industry. It is vital that government takes steps to ensure the construction industry remains strong during this uncertain time and provides support for trained professionals to deliver current projects and develop a pipeline of work for the future.
"Construction professionals clearly feel confident about their ability to get and keep a job, to improve their financial situation and advance in their careers, which shows that despite the output stagnation, the industry remains hopeful for the future.
"But while we remain strongly supportive of getting the construction industry back to work, we must continue to follow government guidelines and find pragmatic ways to ensure the workforce and the general public are kept safe. We must also continue to work collaboratively within the industry, taking an approach to our partners and the supply chain which is focussed on communicating effectively and cooperating to pragmatically resolve any contractual issues that may come up between us.”
--CIOB
This article was originally published as "Construction remains upbeat despite record slump" on the CIOB website on 11 May 2020.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Conserving the Hilda Besse Building
Improving facilities, accessibility and overall appearance.
BSRIA IAQ topic guide published
Free download of TG 12/2021 available.
Electrotechincal mentors wanted
TESP works with The Youth Group to form skill sharing network.
OpenBuilt supply chain technology in development
Big tech collaborates on platform for the built environment.
Concerns raised over Future Buildings Standard
Letter signed by 21 organisations sent to MHCLG.
The infrastructure planning process
A look at the Government's strategic approach.
Steps to help reduce the spread of infection inside buildings.
Urban exploration and construction
This social media-centred hobby can be both dangerous and illegal.
Millwork wall treatment with a long and illustrious history.
Weekly workplace noise estimator tool
HSE introduces cumulative exposure calculator.
The Edwardians and their houses.
Cut off from civilian life for over 900 years.
Can net zero and levelling-up align?
Gaining green support from the carbon giants.
Receive the Designing Buildings newsletter
Click the button to subscribe.