The NatWest SME growth tracker has shown a promising future for construction for small and medium enterprises
The latest published results from the NatWest SME growth tracker have shown that the construction industry is in a period of strong expansion.
The Business Activity Index scored construction at 55.1 in September 2024.
A reading over 50.0 shows growth
The key findings that the NatWest SME growth tracker include:
- Strongest rise in new work since March 2022
- Marginal upturn in employment numbers
- Expectations for the year ahead remains positive
- September sees strong rise in input costs
The data ultimately points to a strong growth in the construction industry, with output growth at the fastest rate since January.
When asked, the firms said the most likely reason for this boost is an improved demand and new contracts in the wake of the installation of the new Labour government, thereby increasing clients willingness to spend.
Total new business also expanded at the fastest pace in September in two-and-a-half years. An rise in employment numbers was also recorded in September, and overall employment has risen over four of the five past months.
The NatWest SME growth tracker shows a brighter future
The tracker shows that the next 12 months for construction are bright, with businesses having confidence that economic conditions and rising demand will lead to future growth for the industry.
Laura Capper, head of construction and manufacturing at NatWest comments: “September’s rise in construction activity among SMEs is a clear sign that demand is rebounding, driven by new contracts and a renewed willingness to invest after the election. While the sector is seeing growth, particularly in new housing projects, the pressure from rising material costs remains a concern. Managing these cost increases will be key for SMEs to sustain momentum in the months ahead, but the positive outlook and increasing workloads suggest the sector is on solid ground for continued expansion.”
