UK construction: two year decline says CIPS

The UK construction industry has been in decline for two years, but the rate of decline is now the slowest it has been in that time.

That’s according to the latest CIPS/Markit construction purchasing managers’ index.

Activity levels from the latest survey registered 48.6 in January, up from December’s 47.1 but still below the 50 point mark which indicates decline.

The index has not risen above 50 during the past two years, although January’s fall is the smallest drop.

Around 60% of firms are anticipating growth, citing improving economic conditions, planned marketing campaigns and the restart of work on on-hold projects.

CIPS chief executive David Noble said: “Construction continues to be the worst performing sector of the UK economy – struggling in the face of credit supply shortages and overall economic uncertainty.

“Purchasing managers said the widespread chaos caused by the snow in January didn’t help an already fragile industry with new orders disappointingly low.

“Particularly disappointing is the slowdown in housebuilding as this has been one of the few bright spots in recent months”.