Construction sector looking up

By June 28, 2013Business news

News that the construction sector has returned to growth has been cautiously welcomed by industry experts. However, a recent survey indicates that house building is leading the way, while commercial construction and civil engineering remains in the doldrums.

Residential building work has increased at its fastest pace for more than two years and total construction output has risen for the first time since October 2012, according to the CIPS UK construction purchasing managers’ index, conducted by Markit. More than 40 % of construction firm directors who answered the survey are optimistic and predict a rise in output in the next 12 months.

Chartered Institute of Purchasing and Supply chief executive, David Noble, said: ‘The construction sector seems to have turned a corner after six dismal months. The improvement has been fuelled by a boom in house building, but the sector remains bogged down by contractions in commercial construction and civil engineering.’

He went on to say that a lack of public sector projects was having an effect on civil engineering, and this, combined with poor performance in the commercial sector, meant house building alone was driving the industry growth.

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Maidment Judd

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