Confidence creeping back into construction

According to the CIPS/Markit UK Construction Purchasing Managers’ Index (PMI), which combines output and orders, the index rose sharply to 38.1 last month from 30.9 in March, the highest level in seven months.

Although it marked a significant improvement, the construction PMI remained significantly below the 50 mark which indicates no change in activity levels, with anything below 50 indicative of a contraction and anything above an increase.

Roy Ayliffe, a director at the Chartered Institute of Purchasing & Supply which produces the survey, said: “The darkness that has been gathering across the UK construction economy over the past 13 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.”