Construction sector news
Conditions easing for construction sector
6/5/2009Latest data shows that market contractions in the construction sector are slowing. The monthly Construction Purchasing Managers’ Index (PMI), which indicates confidence in the construction sector, rose from 30.9 in March to 38 in April – the slowest level of contraction for eight months. A PMI of 50 would indicate a neutral outlook, but below 50 still indicates market pessimism.
Indices tracking trends in commercial and civil engineering output rose markedly. Experts say that the housing industry in particular will find it difficult to recover, with falling house prices and fewer mortgage approvals expected to continue to affect the market.
Director at the Chartered Institute of Purchasing & Supply, Roy Ayliffe, said: “The darkness that has been gathering across the UK construction economy over the past thirteen months lifted slightly in April but, against a backdrop of ongoing market uncertainty, fewer new orders and fierce competition, blue skies are still a fair way off.
“Nonetheless, confidence in future sector performance improved. A number of purchasing managers also noted that previously postponed contracts were expected to recommence.”
