Partner Article

Construction growth slows

Growth in the construction industry has slowed down in the past month, according to the Markit/CIPS construction purchasing managers index.

The index came in at 55.8, down from 56.7 in March - a 21 month high for the sector. Any figure over 50 indicates growth within the industry.

David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply, said:
“This month’s Construction PMI figures point towards the continued recovery of the construction
sector.

“However, despite good news for order books and a rise in purchasing activity since the
start of the year, it’s worth remembering that there is still a long way to go to match the expectations of growth seen before the 2010 spending review.”

A fall in construction levels was partially blamed for the poor economic growth figures which pushed the UK back into recession. ONS statistics indicated that construction contracted by 3% in Q1 in comparison with the previous three months, which contributed to the overall 0.2% contraction in the economy.

However, economists have questioned ONS statistics which indicate a decline, while others show growth within the sector.

Speaking to the BBC, Howard Archer, chief UK economist at IHS Global Insight said: “On the face of it, this [PMI data] is a pretty encouraging survey that points to clear, decent construction expansion in April.

This was posted in Bdaily's Members' News section by Ruth Mitchell .