Healthy Future for UK Construction Market

Growth in construction workloads expanded at the fastest pace since Q2 2004.The Chartered Institute for Purchasing and Supply said its seasonally adjusted index for construction rose to 58.9 from 57.3 in February.

Housing activity accelerated to its fastest pace in three months, with the index rising to 56.1 from 53.3.

These growth indicators are supported by a survey from the Royal Institution of Chartered Surveyors on Tuesday which showed the construction sector growing at its fastest pace in nearly three years in the first quarter of 2007.

Skill shortages remained unchanged, with 32 percent of respondents having recruitment difficulties. The labour market appears to be stabilising as a healthy industry continues to demand more labour, while the movement of workers from eastern Europe may be starting to slow.