Is construction industry recovering?

New survey figures have revealed the slowest pace of decline in construction activity for more than a year. According to the Chartered Institute of Purchasing and Supply's (CIPS) purchasing managers' index the recession in the construction industry eased in May.

The study showed a reading of 45.9 in May, up from 38.1 in April and a record low of 27.8 in February,marking its highest level since April 2008.The sector is still in recession, as a score under 50 signals contraction, but the reading suggests the construction industry may getting slightly better.

Roy Ayliffe, director at CIPS, said: “After appearing to be in freefall in February, we are starting to see the construction economy show some signs of life and steer itself back onto the road of recovery...This data suggests that, while the construction sector may be out of the intensive care unit, it's still some way from making a full return to health and there is always danger of a relapse.”

The housebuilding sector produced the most encouraging numbers, with an index figure of 48.9.