Key Statistics: 12 May 2015

Construction

• The May Glenigan Index fell by 11% compared to a year earlier, the largest fall since Q1 2013, as private sector clients and universities delayed schemes in the run-up to the general election. A 21% contraction in non-residential activity was the sharpest since December 2009, reflecting a 50% decline in office starts and sharp falls in the retail, industrial and education sectors. Continued improvements in planning approvals over the period suggest this is a short-term pause due to uncertainty, rather than a permanent shift in market conditions. The May Index covers the value of all projects starting from February to April 2015 with a construction value between £250,000 and £100 million.
• The April Markit/CIPS PMI found the headline measure of construction activity falling to the lowest level in almost two years, attributed to delays and uncertainty related to the election. However the backdrop remains positive, with business optimism remaining strong, though down from March’s nine-year high, and continued job creation. The survey continues to suggest pressure on capacity in the industry, with sub-contractors’ rates rising at the fastest pace in the survey’s 18-year history.

Economy

• Hourly pay for temporary/contract staff rose in April at the fastest pace since July 2007, according to the KPMG/REC survey of recruiters. Pay for workers starting permanent roles grew at the fastest pace in nine months.