Construction contraction hits 21st month

The latest figures from the Chartered Institute of Purchasing and Supply show that contraction in the construction industry is still very much in evidence.
The latest CIPS/Markit Construction Purchasing Managers’ Index registered 47 for last month, up slightly on October’s 46, but still below the 50 mark which indicates where a decline starts.

It is the twenty-first successive monthly contraction in activity within the UK construction industry.

Although residential construction activity grew for the third successive month, that of the commercial and civil engineering subsectors declined again in November.

CIPS chief executive David Noble said: “There is little festive cheer for the UK construction industry which still remains very vulnerable.

“Despite a slight boost in volumes of new business, construction firms are still feeling the effects of the worst economic landscape seen in over a decade.

“Twenty-one months of continued decline has hit the industry incredibly hard. One positive is that the sector is not contracting as sharply as it was this time last year and purchasing managers are remaining upbeat about future business conditions.

“However, it appears we are still some way off from returning to growth let alone reaching the level it was at only two years ago.”