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Encouraging signs for construction sector

03/02/2010 14:49:15

The construction sector is set for a slow recovery but there have been some encouraging signs this week.

There were some signs of encouragement for Britain's construction sector this week, as trading conditions slowly improve.

While the Construction Skills Council (CSC) warned that recovery would take some time, the latest figures from the Chartered Institute of Purchasing Supply (CIPS) suggested that the industry may have turned a corner.

The CIPS / Markit index, published in the Times newspaper, showed that the construction sector continued to contract during January.

However, the index showed that house-building expanded for the fifth consecutive month and that the overall decline was the smallest for two years.

House builders make a significant contribution to the construction sector, but what is really needed is a turnaround in the more valuable commercial and civil engineering segments.

Construction firms will be hoping that as the wider economy returns to growth, demand in these areas will pick up.

January's figures were also influenced by the cold snap, with heavy snow causing interruptions to projects.

It is hoped that February's figures will be more positive, especially if the availability of credit improves.

Posted by Rachel King
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