Markit/CIPS UK construction PMI: Pricing conundrum for construction firms

Published at 15:19 PM on 03 February 2015

Commenting on the latest Markit/CIPS UK construction PMI, Chris Temple, engineering and construction leader at PwC, said:

"As expected, the brief slowdown in construction growth towards the end of last year has not continued into a slump but was merely the construction sector catching its breath after the high growth seen in 2014. The positive outlook reported in the survey also chimes with what we are seeing with our clients, most of whom are predicting solid growth in excess of 3% for the sector in 2015.

"The rebound in growth will give construction firms confidence to continue recruiting workers and bring job creation back onto the agenda over the coming year.

“The sharp fall in oil prices has had the inevitable effect of decreasing input prices. However, as low oil prices continue, construction firms will come under increasing pressure from customers to pass the savings onto them, particularly as current sentiment suggests that the low prices may be sustained for some time.

"The conundrum for construction firms will be whether they assume that low oil prices will continue for a sustained period, and set their prices accordingly, or build in the possibility of an oil price rise, which could risk their customers moving to cheaper competitors. It will be a tricky balancing act but sitting on the fence may not be an option."

Ends

Notes to editor

To speak to Chris Temple or another of our construction industry experts, please contact Hilary Downes on [email protected] or 07718 340113

About PwC

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PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.


Hilary Downes
PwC | Manager - Communications
Office: +44 (0)20 7213 4706 | Mobile: +44 (0)7718 340 113
Email: [email protected]
PricewaterhouseCoopers LLP
1 Embankment Place, London WC2N 6RH


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About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2016 PwC. All rights reserved

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